Question

How long will it take for a lump-sum investment to triple in value at an interest rate of 1.5% per six-months, compounded continuously? For the lump sum investment to triple in value at an interest rate of 1.5% per sx months compounded continuously, twill take time periods

Answer 1

We shall first calculate the equivalent discrete rate:
e^0.015=1.0151131

Now for tripling in value, let the number of periods be n

Therefore:

1.0151131^n=3

n=73.25

Hence it shall take approximately 73.25 time periods.