SOLUTION: At what rate do you need to invest money into a bank account earning continuously compounded interest if you want to double your money in 30 months?

Question 1137562: At what rate do you need to invest money into a bank account earning continuously compounded interest if you want to double your money in 30 months?
Answer by ikleyn(52772) (Show Source): You can put this solution on YOUR website!
.

30 months = 2.5 years.


 = 2*P,   where P is the principal.


2.5*r = ln(2)


r =  = 0.2773 = 27.73%


ANSWER.  0.2773,  or  27.73% annual interest rate compounded continuously.

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