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How long will it take you to double your principal in an account that pays 6.5% annual interest compounded continuously

Guest May 8, 2017
 #1
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+1

 

We have

 

2P  = Pe^(r * t )     where r  =   .065   and t is the time to double

 

2P = Pe^( .065 * t)     divide both sides by P

 

2  =  e^(.065 * t )        take the Ln  of both sides

 

Ln 2  = Ln  2^(.065 * t)     and by a log property we can write

 

Ln 2  =  ( .065 * t)  Ln e         and Ln e   = 1   so we can disregard this

 

Ln 2   = .065 * t      divide both sides by .065

 

Ln 2 / . 065  = t  ≈  10.7  years

 

 

 

cool cool cool

CPhill  May 8, 2017

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