Question

If you deposit $350 in an account that compounds interest continuously at 6.3%, how long will ittake to double your money?

Answer 1

11 years

Explanation:

Double of the amount deposited = $350 × 2 = $700

First, convert R as a percent to r as a decimal

r = R/100

R = 6.3%

Hence,

r = 6.3/100

r = 0.063 per year,

Then, solve the equation for t = time, the formula is given as:

t = ln(A/P) / r

A = Doubled amount = $700

P = Principal = Initial amount = $350

t = ln(700.00/350.00) / 0.063

t = 11.002 years

Approximately , t = 11 years

Therefore, it will take 11 years for your money to double.