Question 540573: How long does it take for an investment to double in value if it is investedat 6% compounded monthly? Compounded contiuously? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! How long does it take for an investment to double in value if it is invested at 6% compounded monthly?
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A(t) = Ao*(1+(r/n))^(nt)
2Ao = Ao*(1+(0.06/12))^(12t)
(1.005)^(12t) = 2
(12t) = log(2)/(log1.005) = 139
t = 11.58 Years
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Compounded contiuously?
A(t)= Ao*e^rt
Solve: e^(0.06t) = 2
0.06t = ln(2)
t = 11.55 years
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Cheers,
Stan H.
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