SOLUTION: Find the time it takes for $610,000 to double when invested at an annual interest rate of 20% compounded continuously

Question 1163089: Find the time it takes for $610,000 to double when invested at an annual interest rate of 20% compounded continuously
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!

The formula for continuous compounding is

P is the beginning principal
A is the final amount
r is the annual interest rate
t is the number of years

You know the interest rate; and you know you want the amount to double -- that is, you want A = 2P. So

Substitute the given interest rate of 20% (0.20) and use a calculator.

Note that the original amount is irrelevant; for a given interest rate, the doubling time is the same whether the original amount is a dollar or a million dollars.

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