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Mathematics 18 Online
OpenStudy (anonymous):

how long will it take for an investment to double in value if it earns 7.25 compounded continuously

OpenStudy (kropot72):

The required formula is \[A=Pe ^{rt}\] P = principal r = annual interest rate t = number of years A = amount after time t Note: e is the base of natural logarithms

OpenStudy (kropot72):

\[\frac{A}{P}=2=e ^{0.0725t}\] Taking logs of both sides: \[\ln 2=0.0725t\] Now you just need to solve the last equation for t.

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