Question

Suppose that $1600 is invested at an interest rate of 1.5% per year, compounded continuously. After how many years will

the initial investment be doubled?
Do not round any intermediate computations, and round your answer to the nearest hundredth.

Answer 1

Explanation:

Continuous compounding formula is

P e^(rt) r is decimal interest per year t is number of years

we want to double out initial investment (it doesn't matter what the amount is....just double it '2' )

2 = e^(.015 * t ) < ==== solve for 't' LN both sides to get

ln 2 = .015 t

t = 46.21 years