Question

If given the following scenario:
If you deposited some money into an account where the interest rate was 6% compounded continuously, how long would it take for the amount in the account to triple?
Which of the following equations could you use to solve for the number of years?

a) 1 = {e^{0.06t}}
b) 180 = 60{e^{0.06t}}
c) 27 = 3{e^{0.06t}}
d) 300 = 100{e^{0.06t}}
e) 3 = {e^{0.06t}}
f) 45 = 15{e^{0.06t}}

Hint: there are 4 correct answers

Answer 1

If your money is compounded cotinuously, you will use the formula: A(t) = P e^(rt), where A(t) is the amount after t years, P is the oritinal amount (principal), r is interest rate as a decimal, t is time in years.
So, the A(t) must be three times P. 

The correct answers are b,d,e, and f