SOLUTION: If $1000 is invested in an account paying 12% annually compounded continously, how long will it take to double the investment?
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Question 932265: If $1000 is invested in an account paying 12% annually compounded continously, how long will it take to double the investment?
Answer by tommyt3rd(5050) (Show Source): You can put this solution on YOUR website!
For continuous compounding we use:
so we can write:
taking the natural log of both sides leads to
so time is about 5.78 years
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