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Suppose that an investment earns 4.73% interest compounded continuously.

Determine the amount of time it would take for the investment to double in size.

User Raymkchow
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To determine the amount of time it would take for an investment to double in size when earning 4.73% interest compounded continuously, we can use the formula:

t = (ln 2) / r

where t is the time, ln is the natural logarithm, 2 is the factor by which the investment needs to grow, and r is the interest rate as a decimal.

Substituting the given values, we get:

t = (ln 2) / 0.0473

Using a calculator or approximation, we find:

t ≈ 14.67 years

Therefore, it would take approximately 14.67 years for the investment to double in size at an interest rate of 4.73% compounded continuously.

User Erik James Robles
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