SOLUTION: A woman deposits $50,000 in a savings account with 4% continuously compounded interest. How many years must she wait until the balance has doubled?
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Question 302801: A woman deposits $50,000 in a savings account with 4% continuously compounded interest. How many years must she wait until the balance has doubled?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
It doesn't matter how much you deposit, the time to double your investment is the same whether you deposit 10 cents or 10 million dollars.
And we want
Therefore we need to find the value of 
that makes 
when 
, so
Take the natural log of both sides:
\ =\ \ln(2))
Log of an argument raised to a power is the power times the log of the argument.
\ =\ \ln(2))
But \ =\ 1)
, so
}{0.04})
Just use your calculator
John
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