Question 1007988: How long does it take for an initial investment of $2,500, earning 6.18% interest, compounded continuously, to double? Answer by fractalier(6550) (Show Source):
You can put this solution on YOUR website! We use the formula for continuously compounded interest,
A(t) = Ao * e^(rt)
Plugging in we get
5000 = 2500 * e^(.0618t)
and solve for t
2 = e^(.0618t)
ln 2 = .0618t
t = ln 2 / .0618 = 11.2 years
