Question 420501: Suppose that $11,000 is investted at an interest rate of 5.9% per year, compounded continuously. What is the doubling time?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! Suppose that $11,000 is investted at an interest rate of 5.9% per year, compounded continuously. What is the doubling time?
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A(t) = Ao*e^(rt)
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2Ao = Ao*e^(0.059t)
e^(0.059t) = 2
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Take the ln of both sides to get:
0.059t = ln2
t = 11.75 years
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Cheers,
Stan H.
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