SOLUTION: Kyle Invests in an account earning 4.75% interest compounded continuously. How long will it take to double his investment?
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Question 1198964: Kyle Invests in an account earning 4.75% interest compounded continuously. How long will it take to double his investment?
Answer by MathLover1(20850) (Show Source): You can put this solution on YOUR website!
The continuous compounding interest formula from Financial Mathematics is given as follows:
% =
to double his investment:
.........simplify
........take natural logarithm of both sides
..........
Answer: Kyle will double his investment in years.
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