Question 892638: An account pays 5% interest, compounded continuously. How long will it take for the investment to double? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! An account pays 5% interest, compounded continuously. How long will it take for the investment to double?
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A(t) = P*e^(rt)
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Your Problem:
2P = P*e^(0.05t)
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e^(0.05t) = 2
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0.05t = ln(2)
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t = (ln(2))/0.05
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t = 13.86 years
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It doubles in the 14th year.
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Cheers,
Stan H.
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