How long will it take for an investment to triple, if interest is compounded continuously at 8%? It will take years before the investment triples.

It will take 37.5 years before the investment triples.

The formula for calculating the future value is expressed as:

P is the principal

r is the rate (in %)

t is the time (in years)

If the investment tripled, then A = 3P. The equation will become:

Hence it will take 37.5 years before the investment triples.

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It will take 14 years before the investment triples

Step-by-step explanation:

Continuous Compounding

Is the mathematical limit that compound interest can reach if it was calculated and reinvested into an account's balance over a theoretically infinite number of periods.

The formula for continuous compounding is derived from the formula for the future value of a compound interest investment:

Where:

FV = Future value of the investment

PV = Present value of the investment

i     = Interest rate

t     = Time

It's required to find the time for an investment to triple, that is, FV = 3 PV, knowing the interest rate is i=8%=0.08.

Substituting the known values:

Dividing by PV:

Taking logarithms:

Solving for t:

t = 13.7 years

Rounding up:

It will take 14 years before the investment triples

p

step-by-step explanation: