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 ?


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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

	$P_{n} = P_{o} e^{r t}$ $\Leftrightarrow 6000 = 3000 . e^{\frac{t}{20}}$ $\Leftrightarrow 2 = e^{\frac{t}{20}}; \frac{t}{20} = \ln (2)$ $\Leftrightarrow t = 20 \ln (2); t \approx 13.86 y e a r s$ $20 \times \ln 2$ $13.862944$
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