Question

The compound amount with continuous compounding is given by A= Pe^rt where P is the principal, r the rate and t the time in years. If the rate is 8% find how long it takes for the money to double that is for A= 2P (ln2=0.69315)

Answer 1

2p=pe^0.08t
2=e^0.08t
Log(2)=0.08t*log(e)
T=(log(2)÷log(e))/0.08==8.66years