SOLUTION: Suppose $1,500 is invested in an account at an annual interest rate of 8.5% compounded continously. how long will it take (to the nearest tenth of a year) will it take the investme

Question 953739: Suppose $1,500 is invested in an account at an annual interest rate of 8.5% compounded continously. how long will it take (to the nearest tenth of a year) will it take the investment to double in size?
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!
Suppose $1,500 is invested in an account at an annual interest rate of 8.5% compounded continously. how long will it take (to the nearest tenth of a year) will it take the investment to double in size?
.
When you see "compounded continuously" think:
A = Pe^(rt)
if investment is "doubled" then A=2P:
plug in what you know:
2P = Pe^(.085t)
2 = e^(.085t)
ln(2) = .085t
ln(2)/.085 = t
8.2 years = t

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