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How long will it take an investment of $5,000 to double if the investment earns interest at the rate of 8% compounded continuously? Ro
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How long will it take an investment of $5,000 to double if the investment earns interest at the rate of 8% compounded continuously? Ro
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Question 1025841: I am stuck at this question, please help me.
How long will it take an investment of $5,000 to double if the investment earns interest at the rate of 8% compounded continuously? Round your answer to two decimal places. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! How long will it take an investment of $5,000 to double if the investment earns interest at the rate of 8% compounded continuously? Round your answer to two decimal places.
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A(t) = P*e^(rt)
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2P = P*e^(0.08*t)
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e^(0.08t) = 2
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0.08t = ln(2)
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t = ln(2)/0.08 = 8.66 years
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Cheers,
Stan H.
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