Question 138727: Please help me with this problem,thanks. A commonly asked question is how long will it take to double my money? At 6% interest rate and continuous compounding , what is the answer? Round your answer to the hundredths place.
If a bank compounds continually , then the formula used is A=Pe^rt. Please explain your answer.
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Please help me with this problem,thanks. A commonly asked question is how long will it take to double my money? At 6% interest rate and continuous compounding , what is the answer? Round your answer to the hundredths place.
If a bank compounds continually , then the formula used is A=Pe^rt. Please explain your answer.
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If "P" is doubled, it becomes 2P.
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2P = P e^(0.06t)
2 = e^(0.06t)
Take the natural log.
0.06t = ln2
t = ln2 / 0.06
t = 11,55 years to double.
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Cheers,
Staln H.
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