Question

How long will it take for an investment of $3000 to double in value if the interest rate is 7.5% per year, compounded continuously? (Round your answer to two decimal places.)

Answer 1

Vn=Or(1+or-rate)n
Values after n years equals the original value times (1 +or- the rate)to the n years power

Answer 2

6000=3000(1+.075)n

Answer 3

solve for n and that's your answer

Answer 4

is it 2790.6977 ?

Answer 5

cause that doesnt make sense

Answer 6

?

Answer 7

Actually, this is the equation because it's compounded continuously...

6000 = 3000e^(.075t)

divide both sides by the 3000 and then take the natural log to get rid of the e.

ln(2000) = .075t

t = ln(2000)/.075 ~ 101.3453661...

101.35 years (rounded)

Answer 8

ah i see thanks Ryan!