SOLUTION: A commonly asked question is, “How long will it take to double my money?” At 7% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's p
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Question 235929: A commonly asked question is, “How long will it take to double my money?” At 7% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! A commonly asked question is, “How long will it take to double my money?” At 7% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place.
A(t) = Pe^(rt)
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If P is doubled you get:
2P = Pe^(rt)
e^(rt) = 2
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Take the natural log of both sides:
rt = ln(2)
t = [ln(2)]/r
t = [ln(2)]/0.07
t = 9.9 years (time to double the money at 7% interest compouded continuously)
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Cheers,
Stan H.
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