Question 73827
Here is the second question can you help me again? A commonly asked question is, "How long will it take to double money?" At 10% interest rate and continous compounding, what is the answer? Round to the hundredth's place. 
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The continuous interest equation:
P*e^(r*t) = A
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Make it easy, let P = 1, then A = 2, r = .1; find t
e^.1t = 2
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Find ln of both sides:
.1t = ln(2); (remember ln of e is 1)
:
.1t = .6931472
t = .6931472/.1
t = 6.93 yrs
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Check using a calc:
e^(.1*6.93)
e^(.693) = 1.9997, slightly lower because we rounded it off.
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How about this? Did it make sense to you?