SOLUTION: Please explain: Suppose $2800 is invested in an account at an annual interest rate of 3.7% compounded continuously. How long (to the nearest tenth of a year) will it take to doubl

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Question 1140848: Please explain:
Suppose $2800 is invested in an account at an annual interest rate of 3.7% compounded continuously. How long (to the nearest tenth of a year) will it take to double in size?
Thank you.

Answer by ikleyn(52775)   (Show Source): You can put this solution on YOUR website!
.
They want you solve this equation


    2*2800 = ,


where t is the time (in years).


It is direct translation of the text formulation to Math.


To solve this equation and find "t", first divide both sides by  2800. You will get


    2 = .


Take the natural logarithm of both sides. You will get


    ln(2) = 0.037*t,


    t =  = 18.73.


ANSWER.  18.73 years are needed.  It is about 18 years and 9 months.


         19 years is enough.

Solved, answered and explained.



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