Question

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.

Answer 1

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