SOLUTION: How long it will take for an investment of 2000 dollars to double in value if the interest rate is 10 percent per year, compounded continuously?
Question 523675: How long it will take for an investment of 2000 dollars to double in value if the interest rate is 10 percent per year, compounded continuously? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! How long it will take for an investment of 2000 dollars to double in value if the interest rate is 10 percent per year, compounded continuously?
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A(t) = P*e^(rt)
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4000 = 2000*e^(0.1*t)
2 = e^ (0.1t)
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Take the natural log of both sides to get:
0.1t = ln(2)
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t = 0.6931/0.1
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t = 6.931 years
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Cheers,
Stan H.
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