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Determine how long it will take for a principal amount of $1,500 to become double its initial value when deposited into an account paying interest at a rate of 13%, continuously compounded.

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Determine how long it will take for a principal amount of $1,500 to become double-example-1
User Chris Drew
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1 Answer

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Explanation:

Continuous compounding formula e^(rt)

2 = e^(.13 * t) '2' is 'double r = .13 which is 13% in decimal

LN both sides

ln(2) = .13 t

ln (2) / .13 = t = 5.33 yrs

User Estragon
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