Answer:
1 year
Step-by-step explanation:
Hello,
Continuously compounding with an annual interest rate of 4.5% means multiplying the initial investment by (for t tears).
[tex]\displaystyle e^{(1+4.5\%)t}=e^{\left( 1.045\cdot t \right) }[/tex]
So we need to find t so that:
[tex]\displaystyle e^{\left( 1.045\cdot t \right) }=3\\\\1.0.45t=ln(3)\\\\t=\dfrac{ln(3)}{1.045}=1.051304...[/tex]
Rounding to the nearest whole number gives 1 year.
Hope this helps.
Do not hesitate if you need further explanation.
Thank you
