document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=817151>Question 817151</A>: <I><SPAN STYLE=\"word-break: break-all;\"> How long will it take to double an investment compounded continuously at a rate of 7%? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #492387 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=492387\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> How long will it take to double an investment compounded continuously at a rate of 7%?<BR>\n" );
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document.write( "Formula for continuous compounding: <BR>\n" );
document.write( "A=Pe^rt,P=initial investment,r=interest rate, A=amount after t-years.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "A/P=2<BR>\n" );
document.write( "2=e^rt<BR>\n" );
document.write( "take log of both sides<BR>\n" );
document.write( "ln2=rtlne<BR>\n" );
document.write( "lne=1<BR>\n" );
document.write( "t=ln2/r=ln2/.07=9.9yrs<BR>\n" );
document.write( "It will take about 10 yrs to double the investment.<BR>\n" );
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