SOLUTION: The amount of money in an account with continuously compounded interest is given by the formula A=Pe^rt, where P is the principal, r is the annual interest rate, and t is the time
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Question 477834: The amount of money in an account with continuously compounded interest is given by the formula A=Pe^rt, where P is the principal, r is the annual interest rate, and t is the time in years. Calculate to the nearest hundredth of a year how long it takes for an amount of money to double if interest is compounded continuously at 7.3%. Round to the nearest tenth.
Answer by nerdybill(7384) (Show Source): You can put this solution on YOUR website!
The amount of money in an account with continuously compounded interest is given by the formula A=Pe^rt, where P is the principal, r is the annual interest rate, and t is the time in years. Calculate to the nearest hundredth of a year how long it takes for an amount of money to double if interest is compounded continuously at 7.3%. Round to the nearest tenth.
.
A=Pe^rt
2P=Pe^(.073t)
2=e^(.073t)
ln(2)=.073t
ln(2)/.073 = t
9.5 years = t
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