Question

How long would it take for your investment to double if it is compounded continuously at 8.5% interest rate?​

Answer 1

t = 8.155 years

Explanation:

P = 1,000

A = 2,000

r = R/100

r = 8.5/100

r = 0.085 per year,

Then, solve the equation for t

t = ln(A/P) / r

t = ln(2,000.00/1,000.00) / 0.085

t = 8.155 years