SOLUTION: 1. A university invests $100,000 into an account that pays a 4.75% annual rate compounded continuously. Using the formula A=Pert, where A=the amount in the account after t years, P

Question 1163680: 1. A university invests $100,000 into an account that pays a 4.75% annual rate compounded continuously. Using the formula A=Pert, where A=the amount in the account after t years, P=principal invested, and r=the annual interest rate, how many years, to the nearest tenth, will it take for the university's investment to double?
b) to triple?
c) to quadruple?
Answer by ikleyn(52903) (Show Source): You can put this solution on YOUR website!
.

Part (a): to double

200000 = 


 = 


2 = 


It is your basic formula for doubling.


Take natural logarithm of both sides


ln(2) = 0.0475*t


t =  = 14.59  years.    ANSWER

This case is completed.

For other cases do the same.   Part (a) is your TEMPLATE for other parts.

---------------

To see the theory and many other similar solved problems, see my lesson
    - Problems on continuously compounded accounts
in this site.

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The referred lessons are the part of this online textbook under the topic "Logarithms".

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