Question

Calculate how long it takes for an amount of money to double if interest iscompounded continuously at 8.9%.It willdoublRoundA = PertContinuously Compounded Interest Formula2 = 1e0.0896

Answer 1

Given:

`2=e^(0.089t)`

Solving for t ,

`\begin{gathered} 2=e^(0.089t)\rightarrow\ln (2)=0.089t \\ \rightarrow t=(\ln (2))/(0.089)\rightarrow t=7.78 \end{gathered}`

Thereby, it would take 8 years for the money to double.