Question

The amount of money in an account with continuously compounded interest is given by the formula A=Pert, where P is the principal, r is the annual interest rate, and t is the time in years. Calculate to the nearest hundredth of a year how long it takes for an amount of money to double if interest is compounded continuously at 7.3%. Round to the nearest tenth.

Answer 1

\[t=\frac{ln(2)}{r}\]

Answer 2

r in this case = .073

Answer 3

9.4951....