document.write( "Question 73569: A commonly asked question is, \"How long will it take to double my money?\" At 10% interest rate and continuous compounding, what is the answer? Round to the hundredth's place. PLEASE HELP!!! I Would Appreciate it! \n" ); document.write( "
Algebra.Com's Answer #52619 by stanbon(75887)\"\" \"About 
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A commonly asked question is, \"How long will it take to double my money?\" At 10% interest rate and continuous compounding, what is the answer? Round to the hundredth's place.
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\n" ); document.write( "Continuous compounding gives A = Pe^rt
\n" ); document.write( "P is the initial investment; if you double it you get 2P
\n" ); document.write( "2P = Pe^rt
\n" ); document.write( "Divide both sides by P to get:
\n" ); document.write( "2 = e^rt
\n" ); document.write( "Take the natural log of boh sides to get:
\n" ); document.write( "ln2 = rt
\n" ); document.write( "t= (1/r)ln2
\n" ); document.write( "If r=10% you get:
\n" ); document.write( "t = (1/0.1)(0.69314...)
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\n" ); document.write( "t= 6.9314 years to double your money at 10% annual interest.
\n" ); document.write( "This is usually called \"the rule of 7\".
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\n" ); document.write( "Cheers,
\n" ); document.write( "Stan H. \n" ); document.write( "
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