document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=125868>Question 125868</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The formula for calculating the amount of money returned for an initial deposit into a bank account or CD (certificate of deposit) is given by<BR>\n" );
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document.write( "A is the amount of the return.<BR>\n" );
document.write( "P is the principal amount initially deposited.<BR>\n" );
document.write( "r is the annual interest rate (expressed as a decimal).<BR>\n" );
document.write( "n is the number of compound periods in one year.<BR>\n" );
document.write( "t is the number of years.\r<BR>\n" );
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document.write( "If a bank compounds continuously, then the formula used is  <BR>\n" );
document.write( "where e is a constant and equals approximately 2.7183.<BR>\n" );
document.write( "Calculate A with continuous compounding. Round your answer to the hundredth's place.\r<BR>\n" );
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document.write( "Answer:	\r<BR>\n" );
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document.write( "	Show work in this space:	\r<BR>\n" );
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document.write( "e) 	A commonly asked question is, “How long will it take to double my money?” At 8% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place.\r<BR>\n" );
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document.write( "Answer:	\r<BR>\n" );
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document.write( "	Show work in this space:	\r<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #92246 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><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=92246\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> “How long will it take to double my money?” At 8% interest rate and continuous compounding<BR>\n" );
document.write( "A(t) = Ao*e^(rt)<BR>\n" );
document.write( "Ao is the amount invested<BR>\n" );
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document.write( "Your Problem:<BR>\n" );
document.write( "2Ao = Aoe^rt<BR>\n" );
document.write( "2 = e^rt<BR>\n" );
document.write( "Take the natural log of both sides to get:<BR>\n" );
document.write( "ln2 = rt<BR>\n" );
document.write( "ln2 = 0.08t<BR>\n" );
document.write( "t = ln2 / 0.08<BR>\n" );
document.write( "t = 8.6643 years<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
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