SOLUTION: A deposit of $1000 is made into a fund with an annual interest rate of 10%. Find the time(in years) necessary for the investment to double if the interest is compounded continuousl
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Question 114089: A deposit of $1000 is made into a fund with an annual interest rate of 10%. Find the time(in years) necessary for the investment to double if the interest is compounded continuously.
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
A deposit of $1000 is made into a fund with an annual interest rate of 10%. Find the time(in years) necessary for the investment to double if the interest is compounded continuously.
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2000 = 1000e^(0.10*t)
2 = e^(0.10t)
Take the natural log to get:
ln2 = 0.10t
t = [ln2]/0.10
t = 6.9 years
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Cheers,
Stan H.
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