how do you figure out during what year it will double if the compounding is continous with the given info: invest 10,000 dollars at 4.5% interest. What is in your account after 20 years

Question

how do you  figure out during what year it will double if the compounding is continous with the given info: invest 10,000 dollars at 4.5% interest. What is in your account after 20 years

nottim · Answer

So, Compound interest. You know the formula?

anonymous · Answer

10,000 * e^(0.045*20)

anonymous · Answer

Use a calculator of some kind that has the capability to compute exponents of e.

anonymous · Answer

yes i know how to find the continous compound but i dont understnad how  to find out during what year it will double if the compounding is continous

anonymous · Answer

That means you need to set the equation to 2 times original value and find "t".

10,000 * e^(0.045*t) = 20,000
e^(0.045*t) = 2
0.045*t*ln(e) = ln(2)
0.045*t = ln(2)
t = ln(2)/0.045
t = 15.4

So, the principal will double in the 16th year.