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Find the time it takes for 9,400 to double when invested at an annual interest rate of 18%, compounded continuously. Find the time it takes for $940,000 to double when invested at an annual interest rate of 18%, compounded continuously.

User Prateek Verma
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2.7k points

1 Answer

7 votes
7 votes

PV\text{ }\lim _(n\to\infty)(1+(r)/(n))^(nt)=e^(rt)=PVe^(rt)
U\sin g\text{ this new formula:}
9400\cdot e^(rt)=18800
e^(0.18t)=2
0.18t\text{ ln (e)= ln 2}
t\text{ = }(\ln 2)/(0.18)
t=\text{ 3.85 years}

Find the time it takes for 9,400 to double when invested at an annual interest rate-example-1
Find the time it takes for 9,400 to double when invested at an annual interest rate-example-2
Find the time it takes for 9,400 to double when invested at an annual interest rate-example-3
User Sujoy Gupta
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