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Question 623603: A student deposits $6,000 in a savings account with x% continuously compounded interest. How many years must he wait until the balance has doubled?
I can insert any interest rate for x I would like to use. Thanks!!!
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! A student deposits $6,000 in a savings account with x% continuously compounded interest. How many years must he wait until the balance has doubled?
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Formula for continuous compounding: A=Pe^xt, P=initial investment, x=annual interest rate, A=amount after t years.
For given problem:
A/P=2=e^xt
ln2=xtlne
lne=1
ln2=xt
t=ln2/x (years for any initial investment to double at x interest rate)
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