Question

with solutionpls
Assume $1250 is deposited in a savings account. the interest rate is 6% compounded continuously when will the ampunt be double the original amount?

Answer 1

\[2p=pe^{rt}\]

solve for t

Answer 2

simple use the formula of 72
just divide 72 by the prevailing interest rate u will get to number of years to double the principal. in this case
\[\frac{72}{6} = 12 years\]

Answer 3

why would you do that?

Answer 4

in finance their is this rule of 72

Answer 5

that is not a very good rule

Answer 6

yeah buddy i too feel some times but it is there

Answer 7

it is just approximation

Answer 8

http://en.wikipedia.org/wiki/Rule_of_72

http://www.investopedia.com/ask/answers/04/040104.asp#axzz1dEEEgrxY

btw check these sites

Answer 9

ok...still a dumb rule