SOLUTION: you have $1000 compounded continuously at an interest rate of 5%. How long will it take the amount to double?

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Question 438803: you have $1000 compounded continuously at an interest rate of 5%. How long will it take the amount to double?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
you have $1000 compounded continuously at an interest rate of 5%. How long will it take the amount to double?
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A(t) = P*e^(rt)
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Doubling:
2000 = 1000*e^(0.05t)
2 = e^(0.05t)
0.05t = ln(2)
t = ln(2)/0.05
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t = 13.86 years
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Cheers,
Stan H.