SOLUTION: The compound amount with continuous compounding is given by A = P e^rt , where P is the principal, r the rate, and t the time in years. If the rate is 10%, find how long it takes f

Algebra ->  Algebra  -> Logarithm Solvers, Trainers and Word Problems -> SOLUTION: The compound amount with continuous compounding is given by A = P e^rt , where P is the principal, r the rate, and t the time in years. If the rate is 10%, find how long it takes f      Log On

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Question 138538: The compound amount with continuous compounding is given by A = P e^rt , where P is the principal, r the rate, and t the time in years. If the rate is 10%, find how long it takes for the money to double, that is for A = 2P. (ln 2 = 0.69315)
Answer by vleith(2517) About Me  (Show Source):
You can put this solution on YOUR website!
Given: A+=+P+e%5E%28rt%29 r=0.1 How long to double??
A+=+P+e%5E%28rt%29
2P+=+P+e%5E%280.1%2At%29
2+=+e%5E%280.1%2At%29
ln%282%29+=+ln%28e%5E%280.1%2At%29%29
0.69315+=+0.1%2At
6.9315+=+t+