Question

Isaac deposits $2,500 into an account that pays 4.75% interest

compounding continuously. How long will it take to double his
initial investment? Show all work for full credit and round your
answer to two decimal places.

Answer 1

14.59

Explanation:

The key words in this problem is that you are compounding continuously, so that would be a equals p e to the r t power to show you that formula, and so when it says you have 2500 in the account e to the .4 excuse me, 0.0475 t Power is equal to, it says, doubling the investment, and so you just have to think about your doubling the investment you're going to take 2500 times to do it. The first thing i would do, then, is to divide the 2500 over which actually cancels out this 2500 point so you're. Looking at e to the .0475 t, power is equal to 2 right, 4.75 percent, so to solve for t want to natural log, both sides- i forgot my t in there so to solve for t natural log of 2 divided by 0475, so it takes about 14.593 Years or, however, you're supposed around it says: 2 decimals soul be 14.59