Question 971371: How long would it take to double your principle (Just any number) at an annual interest rate of 8% compounded continuously.
Found 2 solutions by lwsshak3, ikleyn:
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! How long would it take to double your principle (Just any number) at an annual interest rate of 8% compounded continuously.
***
Formula for continuous compounding: A=Pe^rt, P=initial investment, r=interest rate, t=years, A=amt after years.
For doubling the principal, A/P=2=e^rt
e^rt=2
take log of both sides
rt*lne=ln2
lne=1
t=ln2/r==ln2/.08=8.66
How long would it take to double your principle? approximately 9 years
Answer by ikleyn(53906)  (Show Source):
You can put this solution on YOUR website! .
How long would it take to double your  principal (Just any number) at an annual interest rate
of 8% compounded continuously.
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
In his post, @lwsshak3 gave the answer "approximately 9 years".
His calculations are correct, but the formulation of the answer is not adequate to the problem.
With the obtained value t = 8.66 years, the adequate answer is 8 years and 8 months.
This my correction is important, since it shows if a person, who solves the problem,
does understand correctly what he/she is doing.
/////////////////////////////
How the word "principal" is written in the original post, tells me
that the problem's creator does not know proper terminology in the area he writes about.
|
|
|
