Question 48216
At 8% interest rate and continuous compounding, what is the answer? Round your answer to the hundredth's place

A = Pe^(rt)
Doubling the money means A= 2P since P is the amount you start with.

2P = Pe^rt
2 =2^(0.08t)
Take the natural log of both sides to get:
ln2 = 0.08t
t= (ln2)/0.08
t=8.66 years(The money will double in 8.66 years)

Cheers,
Stan H.