SOLUTION: Suppose you decide to invest in an account that earns 2.81% interest compounded continuously. When would the value of the account double? Round your answer to two decimal places.

Algebra ->  Customizable Word Problem Solvers  -> Finance -> SOLUTION: Suppose you decide to invest in an account that earns 2.81% interest compounded continuously. When would the value of the account double? Round your answer to two decimal places.      Log On

Ad: Over 600 Algebra Word Problems at edhelper.com


    

Question 1135491: Suppose you decide to invest in an account that earns 2.81% interest compounded continuously. When would the value of the account double? Round your answer to two decimal places.
Answer by ikleyn(52884) About Me  (Show Source):
You can put this solution on YOUR website!
.
The problem asks you to find the time " t " from this equation


    A%2Ae%5E%280.0281%2At%29 = 2A.


Cancel the factor A in both sides and take the natural logarithm of both sides.

You will get


    0.0281*t = ln(2).


So, the answer is  t = ln%282%29%2F0.0281 = 24.67 years, or about 24 years and 8 months.

Solved.