You can put this solution on YOUR website! Find the doubling time for money invested at 3% compounded continuously.
:
The continuous interest formula = A
where
P = initial amt (in this problem we will use 1)
r = interest rate in decimal form, (.03)
t = no. of years
A = resulting amt; (in this problem it will be 2)
: = 2
using natural logs = ln(2)
log equiv of exponents
.03t*ln(e) = ln(2)
Find the nat log of both side. (nat log of e = 1)
.03t = .693
t =
t = 23.1 yrs to double at 3%
:
:
Confirm this on a calc: enter e^(.03*23.1) results: 1.9997 ~ 2
