Suppose-you-put-3000-in-a-savings-account-with-a-5-annual-interesrate-compounded-continously-How-long-would-it-take-for-your-money-tl-double-

Question Number 125977 by liberty last updated on 16/Dec/20

S u p p o s e y o u p u t $ 3000 i n a s a v i n g s a c c o u n t

w i t h a 5 % a n n u a l i n t e r e s r a t e, c o m p o u n d e d

c o n t i n o u s l y . H o w l o n g w o u l d i t t a k e f o r

y o u r m o n e y t l d o u b l e ?

Answered by bramlexs22 last updated on 16/Dec/20

P_{n} = P_{o} e^{r t}

\Leftrightarrow 6000 = 3000 . e^{\frac{t}{20}}

\Leftrightarrow 2 = e^{\frac{t}{20}}; \frac{t}{20} = \ln (2)

\Leftrightarrow t = 20 \ln (2); t \approx 13.86 y e a r s

20 \times \ln 2

13.862944