How long does it take for $1,000 to triple in value if the interest rate is 6% compounded continuously?
e^(0.06t) = 3 --->t = 18.31 years
A = Pe^rt
Continuous Compound Interest Formula
where, P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of years
A = amount after time t
e stands for the Napier's number (base of the natural logarithm) which is approximately 2.7183. However, one does not have to plug this value in the formula, as the calculator has a built-in key for e.
18.3102 years
Comments
e^(0.06t) = 3 --->t = 18.31 years
A = Pe^rt
Continuous Compound Interest Formula
where, P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of years
A = amount after time t
e stands for the Napier's number (base of the natural logarithm) which is approximately 2.7183. However, one does not have to plug this value in the formula, as the calculator has a built-in key for e.
18.3102 years