SOLUTION: Hi, I have the answer to this problem, but I did not solve it algebraically. Can you help me with how it would be solved through algebra? Here is the problem: If a bank compo

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Question 138088: Hi,
I have the answer to this problem, but I did not solve it algebraically. Can you help me with how it would be solved through algebra? Here is the problem:
If a bank compounds continuously, then the formula used is A=Pe^rt
where e is a constant and equals approximately 2.7183, P = $3000 and r=6%, how long will it take (t) to double the P? In other words, if A=6000, P=3000, e= 2.7183 and r=6%, solve for t

Answer by scott8148(5891) About Me  (Show Source):
You can put this solution on YOUR website!
dividing by P (3000) __ .5=e^(.06t)

taking natural log __ ln(.5)=.06t

dividing by .06 __ [ln(.5)]/.06=t


e is the base for natural logs