document.write( "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?
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Algebra.Com's Answer #853877 by n2(78) $\"\"$ $\"About$

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\n" ); document.write( "A commonly asked question is, \"How long will it take to double my money?\" At 10% interest rate and
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document.write( "The formula for the future value at continuous compounding is \r\n" );
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document.write( "    FV = ,    (1).\r\n" );
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document.write( "where A is the deposited amount, 'r' is the nominal interest rate and 't' is the time in years,\r\n" );
document.write( "'e' is the base of natural logarithms (e = 2.71828...)\r\n" );
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document.write( "In your problem, A = 10,000 dollars,  FV= 20,000 dollars,  r = 0.1.\r\n" );
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document.write( "So, formula (1) takes the form\r\n" );
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document.write( "    20000 = .\r\n" );
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document.write( "It implies\r\n" );
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document.write( "     = ,\r\n" );
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document.write( "    2 = .\r\n" );
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document.write( "Take natural logarithm of both sides \r\n" );
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document.write( "    ln(2) = 0.1*t\r\n" );
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document.write( "    t =  = 6.93147 years.\r\n" );
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document.write( "ANSWEWR.  The time to double the deposited amount is about  6.93 years under given conditions.\r\n" );
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