SOLUTION: A commonly asked question is, "How long will it take to double my money?" At 10% interest rate and continous compounding, what is the answer? The base amount should be $10,000 and

Question 33003: A commonly asked question is, "How long will it take to double my money?" At 10% interest rate and continous compounding, what is the answer?
The base amount should be $10,000 and the compounding rate is 2.7183.
Answer by xcentaur(357) (Show Source): You can put this solution on YOUR website!
e = 2.71828.
Seems familiar? Its the same as our rate.

That is our final formula.

So we get,
P=10,000
R=2.7183
Years=Y
A=20,000
Continuous compounding:

So log of 2 to the base 'e' is equal to 'Yr'
Log to the base e is also called natural logarithm,or ln()

Now to convert log to ln we need to multiply by 2.303

(from log tables)
Y=0.255
Obviously,this is a bit small,so adjusting the decimal values we get:
Y=25.5

So to double your money at continous compound rate 'e',
you'd need 25.5 years.

Hope this helps,
xC

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