SOLUTION: How long will it take an investment of $7,000 to double if the investment earns interest at the rate of 7% compounded continuously? (Round your answer to two decimal places.)
Algebra.Com
Question 999383: How long will it take an investment of $7,000 to double if the investment earns interest at the rate of 7% compounded continuously? (Round your answer to two decimal places.)
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
How long will it take an investment of $7,000 to double if the investment earns interest at the rate of 7% compounded continuously? (Round your answer to two decimal places.)
compound interest formula for continuous compounding:A= Pe^rt, P=initial investment,r=interest rate,A = amount after t-years
A/P=2
A/P=e^rt=2
take log of both sides
rtlne=ln2
rt=ln2
t=ln2/.07=9.9.90 yrs
How long will it take an investment of $7,000 to double? 9.90 yrs
RELATED QUESTIONS
How long will it take an investment of $1,000 to double if the investment earns interest... (answered by mananth)
How long will it take an investment of $2000 to double if the investment earns interest... (answered by mananth)
How long will it take to double an investment compounded continuously at a rate of... (answered by lwsshak3)
I am stuck at this question, please help me.
How long will it take an investment of... (answered by stanbon)
A sum of $2500, 000 earns interest at a rate of 12% per year compounded quarterly. How... (answered by ikleyn,solver91311)
A sum of $2500, 00 earns interest at a rate of 12% per year compounded quarterly. How... (answered by greenestamps,josgarithmetic,ikleyn)
How long will it take for an investment of $46,000 to grow to $48,600 if the investment... (answered by jorel1380)
How long will it take for 1000 to double, in an investment, when interest is compounded... (answered by Edwin McCravy)
How long will it take for an investment of $1000 to double in value if the interest rate... (answered by robertb)