Question

HELP!!! Using the formula for continuous compounding of interest: A = Pe^rt, find the time necessary for $1000 to double at 6 1/2% interest.

Answer 1

Plugging in our variables, we get:
\[2P=Pe^{.065t}\]where P is the initial amount. Divide both sides by P:
\[2=e^{.065t}\]Next you'll want to take the natural log of both sides to eliminate the e:
\[\ln2=.065t\]Can you solve for t from here?

Answer 2

Yes! So t = 10.6638. Therefore, 10 years, right?

Answer 3

Right, it would be about 10.66 years.

Answer 4

Okay, thank you so much!

Answer 5

You're welcome, glad I could help