SOLUTION: The formula A= P e^rt describes the accumulation value A, of a sum of money P, the principal, after t years at annual percentage rate r (in decimal form) compounded continuously.

Algebra ->  Logarithm Solvers, Trainers and Word Problems -> SOLUTION: The formula A= P e^rt describes the accumulation value A, of a sum of money P, the principal, after t years at annual percentage rate r (in decimal form) compounded continuously.       Log On


   

Question 1104541: The formula A= P e^rt describes the accumulation value A, of a sum of money P, the principal, after t years at annual percentage rate r (in decimal form) compounded continuously.
Amount invested= $6500
Annual interest rate= 11%
Accumulated amount= Double the amount invested
What is the Time (t) in years?
(Round to one decimal place)
Answer by josgarithmetic(39630) About Me  (Show Source):
You can put this solution on YOUR website!
Show the basic formula this way:
A=+P+e%5E%28rt%29

You are looking for t when this occurs, for the question part: 2=e%5E%28rt%29
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ln%282%29=rt%2A1
highlight%28t=ln%282%29%2Fr%29------------formula for the doubling-time.

Use r=0.11 to find the correct value for t.