SOLUTION: how long will it take for an investment to double in value if it earns 5.25% compound continuously?

Question 471981: how long will it take for an investment to double in value if it earns 5.25% compound continuously?
Answer by htmentor(1343) (Show Source): You can put this solution on YOUR website!
If the interest is compounded continuously, we use this formula to determine the future value:
where P = the initial principal, Y = the number of years, r = interest rate
If the investment doubles, FV = 2P, so we can write

Take the natural log of both sides to get rid of the exponential, and solve for y:

This gives Y = 13.203 years
RELATED QUESTIONS
Question Help How long does it take for an investment to double in value if it is... (answered by rothauserc)

How long will it take to double my investment (which they don't tell me) with compound... (answered by Alan3354)

How long will it take for an investment of $1000 to double in value if the interest rate... (answered by robertb)

How long it will take for an investment of 2000 dollars to double in value if the... (answered by stanbon)

How long it will take for an investment of 2000 dollars to double in value if the... (answered by graphmatics,MathTherapy)

How many years will it take for $10000 to double in value if it earns 7% compounded... (answered by ewatrrr)

an account pays 5% interest, compounded continuously. how long will it take for the... (answered by jim_thompson5910)

An account pays 5% interest, compounded continuously. How long will it take for the... (answered by stanbon)

How long does it take for an investment to double in value if it is invested at 16%... (answered by MathLover1)