Question 252472
Calculate to the nearest hundredth of a year how long it takes for an amount of money to double if interest is compounded continuously at 5.5%. Round to the nearest tenth.
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A(t) = Pe^(rt)
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If you invest "P", doubling will give you "2P".
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2P = Pe^(0.055t)
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2 = e^(0.055t)
Take the natural log of both sides to solve for "t":
0.055t = ln(2)
t = 12.6 years
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Cheers,
Stan H.