Help please - The amount of money in an account with continuously compounded interest is given by the formula A = Pe^rt, where P is the principal, r is the annual interest rate, and t is the time in years.

Calculate to the nearest tenth of a year how long it takes for an amount of money to double if interest is compounded continuously at 5.2%.

Question

Help please - The amount of money in an account with continuously compounded interest is given by the formula A = Pe^rt, where P is the principal, r is the annual interest rate, and t is the time in years.

Calculate to the nearest tenth of a year how long it takes for an amount of money to double if interest is compounded continuously at 5.2%.

anonymous · Answer

I think I do

t=  ln (2)
   --------
    .052                but not sure.

wolf1728 · Answer

Here's a page that shows the formula: http://www.1728.org/rate2.htm We'll say the principal is $100 and the total is $200 Years = [natural log(Total / Principal)] / rate Years = [natural log(200 / 100)] / .052 Years = 0.69314718056 / .0052 Years = 13.3297534723

anonymous · Answer

Oh okay so you just used whats on that site and applied it to my thing. I'll read through this. And I my formula i had up there gave me 13.3 too

anonymous · Answer

Thank you for helping me :) It's appreciated

wolf1728 · Answer

You are welcome By the way, here's a calculator to check your answer: http://www.1728.org/compint.htm It calculates 13.3298

wolf1728 · Answer

And thanks for the medal :-)

anonymous · Answer

Np!