Question

You invest $10,200 in an account that compounds continuously at an annual percent interest rate of 6.25%. How long does it take to double your money?

Answer 1

11.09 years

Explanation:

Given data

Principal P= $10200

Rate= 6.25%

Double the principal A = $20,400

The expression for the time taken is

t= ln(A/P)/r

t= ln(20400/10200)/0.0625

t= ln(2)/0.0625

t= 0.69314/0.0625

t= 11.09024 years

Hence the number of years is 11.09 years