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.

Question

anonymous · Answer

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?

anonymous · Answer

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

anonymous · Answer

Right, it would be about 10.66 years.

anonymous · Answer

Okay, thank you so much!

anonymous · Answer

You're welcome, glad I could help