(Round up to the next year.)

Question

a. How many years does it take for $1 to become $3 at 5% interest compounded continuously?

b. How many years does it take for $1,000,000 to become $3,000,000 at 5% interest compounded continuously?

Answer 1

a. 3 = 1 e^(.05 t) ... ln(3) = .05 t

b. same growth as a. , so same time