Use an exponential model to solve the problem:
Determine how much time is required for an investment to double in value if interest is earned at the rate of 6.25% continuously.

Question

Use an exponential model to solve the problem:
Determine how much time is required for an investment to double in value if interest is earned at the rate of 6.25% continuously.

campbell_st · Answer

well is the model 

$$A = P \times  e^{rt}$$

anonymous · Answer

what values do we plug in for the variables?

tkhunny · Answer

Always read the problem statement carefully.  Many questions can be answered.

"investment to double"

P = Beginning Investment VAlue
A = Terminal Investment Value

campbell_st · Answer

ok... so for double let P = 1 and A = 2  and you know r = 0.0625 as a decimal 


so 

$$2 = 1 \times e^{0.0625t}$$

take the log of both sides then solve for t

anonymous · Answer

thanks guys, I get it now