Question

How long will it take an investment to double at 8% annual Interest? (Assume the interest rate is compounded continuously)

Answer 1

8.66 years

Explanation:

F = Pe^(rt)

2 = e^(0.08t)

ln 2 = ln [e^(0.08t)]

ln 2 = 0.08t

t = (ln 2)/0.08

t = 8.66

Answer: 8.66 years