Question

investment how long would it take to double your principal in an account that pays 6.5% annual interest compounded continuously

Answer 1

The formula for continuously compounded interest is the following:


`A = Pe^(rt)`

Where
`A` is the resulting amount,
`P` is the initial amount,
`e` is the mathematical constant (2.718...),
`r` is the interest rate (percentage), and
`t` is the time in years.

Since you are looking to double your money, you can use any value for
`A` and
`P`, as long as
`A` is twice
`P`. This gives you the following equation:


`2 = e^(0.065t)`

Solving for
`t` will give you your answer.