Question 126368: A woman deposits $50,000 in a savings account with 4% continuously compounded interest. How many years must she wait until the balance has doubled?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A woman deposits $50,000 in a savings account with 4% continuously compounded interest. How many years must she wait until the balance has doubled?
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The time is the same for $1 as it is for $50,000.
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2 = 1*e^(rt)
2 = 1*e^(0.04t)
Take the natural log of both sides to get:
ln2 = 0.04t
t = ln2 / 0.04
t = 17.329 years
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Cheers,
Stan H.
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