SOLUTION: Suppose you decide to invest in an account that earns 2.81% interest compounded continuously. When would the value of the account double? Round your answer to two decimal places.

Question 1135491: Suppose you decide to invest in an account that earns 2.81% interest compounded continuously. When would the value of the account double? Round your answer to two decimal places.
Answer by ikleyn(52898) (Show Source): You can put this solution on YOUR website!
.

The problem asks you to find the time " t " from this equation


     = 2A.


Cancel the factor A in both sides and take the natural logarithm of both sides.

You will get


    0.0281*t = ln(2).


So, the answer is  t =  = 24.67 years, or about 24 years and 8 months.

Solved.

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