The amount of money in an account with continuously compound interest is given by the formula A = Pe^rt, where P is the principal, r is the annual interest rate, and t is 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 6.4%. Round to the nearest tenth.

Question

anonymous · Answer

what is the 'e' in the formula?

anonymous · Answer

10.83

anonymous · Answer

Consider any Principal,  P=100 
so you want 
200 = 100e^(.064t) 
2 = e^.064t 
.064t=ln 2 

ln 2 = .693147

.693147/.064= 10.8304   so 10.83

anonymous · Answer

Hope this helped.