SOLUTION: 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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Question 36640: 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 Paul(988) About Me  (Show Source):
You can put this solution on YOUR website!
THe formula that you have to use is:
A=Pe%5E%28rt%29
2%2850000%29=50000e%5E%280.04t%29
100000=50000e%5E%280.04t%29
2=e%5E%280.04t%29
ln2=lne%5E%280.04t%29
0.04t=in2
t=ln2%2F0.04t
t=17
Hence, it will take 17 years to double.
Paul.