BANKING Find the amount of time in years required for an investment to double at a rate of 6.2% if the interest is compounded continuously.

Question

asked Aug 27, 2023 88.3k views

1 Answer

Dassum · Answer 1 · 2023-09-03T04:32:21+0000

Answer:

11.52 years

Explanation:

Say our initial investment was P

we want our total investment to result in twice of P, so 2P

we have x as our time continuously

2P=P(1.062)^x

2=1.062^x

log1.062(2)=x

x=11.52