SOLUTION: Find the time it takes for $9,800 to double when invested at an annual interest rate of 10%, compounded continuously. Round your answer to 4 decimal places.
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Question 1088803: Find the time it takes for $9,800 to double when invested at an annual interest rate of 10%, compounded continuously. Round your answer to 4 decimal places. Answer by mathmate(429) (Show Source):
You can put this solution on YOUR website! Question:
Find the time it takes for $9,800 to double when invested at an annual interest rate of 10%, compounded continuously. Round your answer to 4 decimal places.
Solution:
Future value for continuous interest rate
F=Pe^(rt)
or
F/P=2=e^(rt)
Take natural log
log(2)=rt
t=log(2)/r=log(2)/0.1=6.931 years.
