SOLUTION: Need help with this. Thanks! A woman deposits $50,000 in a savings account with 4% continuously compound interest. How many years must she wait until the balance has doubled?

Question 140090: Need help with this. Thanks!
A woman deposits $50,000 in a savings account with 4% continuously compound interest. How many years must she wait until the balance has doubled?
Answer by scott8148(6628) (Show Source): You can put this solution on YOUR website!
the formula you need is A=Pe^(rt)
__ A is the Amount after time t
__ P is the Principal you start with
__ e is Euler's number (the base for natural logarithms)
__ r is the rate of interest
__ r and t have to use the same time units

100000=50000e^(.04t) __ dividing by 50000 __ 2=e^(.04t)

taking natural log __ ln(2)=.04t __ dividing by .04 __ [ln(2)]/.04=t
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