What annual rate of interest compounded continuously is required to triple an investment in 12 years? Round your answer to three decimals.
A.
B.
C.
D.
Final Answer: The annual rate of interest compounded continuously required to triple an investment in 12 years is
Step 1 :The formula for continuous compounding is
Step 2 :In this case, we know that
Step 3 :We can rearrange the formula to get
Step 4 :Then we can substitute the known values into the formula and calculate
Step 5 :Finally, we need to convert
Step 6 :Final Answer: The annual rate of interest compounded continuously required to triple an investment in 12 years is