Question 588635: The amount of money in ana ccount with continuoudly compounded interest is given by the formula a=Pen, where P is the principal, R is the annual interest rate, and T is the time in years.calculate to the nearest hundredth of a year how long it takes for an amount of money to double if an interest is coumpounded continously at 6.2%. Round to the nearest tenth
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The amount of money in an account with continuosly compounded interest is given by the formula a=Pen, where P is the principal, R is the annual interest rate, and T is the time in years.calculate to the nearest hundredth of a year how long it takes for an amount of money to double if an interest is compounded continously at 6.2%. Round to the nearest tenth
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A(t) = P*e^(rt)
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2P = P*e^(0.062t)
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2 = e^0.062t)
0.062t = ln2
t = 11.2 years
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Cheers,
Stan H.
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