SOLUTION: Suppose that ​$ 6000is invested at an interest rate of 5.8​% per​ year, compounded continuously. What is the doubling​ time?
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Question 1130374: Suppose that $ 6000is invested at an interest rate of 5.8% per year, compounded continuously. What is the doubling time? Found 3 solutions by addingup, ikleyn, MathTherapy:Answer by addingup(3677) (Show Source):
You can put this solution on YOUR website! log(2)/0.058 = 5.2 years
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Note: The amount doesn't matter, whether it's 1 or 6000, the time will be the same for one or the other as long as the rate is the same. Rate and time determine the doubling time.
The formula for the future value of a principle compounded continuously, under given conditions is
FV = ,
where P is the principle investment amount and t is the time in years.
So, the problem asks, when it will happen that
2P = .
It impliues
2 =
ln(2) = t*0.058
t = = 11.95 years, or about 12 years.
Answer. 11.95 years; 12 years is enough.
You can put this solution on YOUR website!
Suppose that $ 6000is invested at an interest rate of 5.8% per year, compounded continuously. What is the doubling time?
Nowhere close to what the other person says.
Correct answer:
