Question

Determine how long it will take for a principal amount of $1,500 to become double its initial value when deposited into an account paying interest at a rate of 13%, continuously compounded.

guys pls help

Answer 1

Explanation:

Continuous compounding formula e^(rt)

2 = e^(.13 * t) '2' is 'double r = .13 which is 13% in decimal

LN both sides

ln(2) = .13 t

ln (2) / .13 = t = 5.33 yrs