Mike Hallenberg deposited some money into a bank account that earns 5.6% interest compounded continuously. How long would it take to double the amount of money in Mr. Hallenberg's account?
2P = P*e^(.056 * t) divide both sides by P
2 = e^(.056 * t) take the natural log of both sides
Ln 2 = Ln e^(.056 * t) and we can write
Ln 2 = (.056 * t ) * Ln e since Ln e = 1, we can ignore this
Ln 2 = .056 * t divide both sides by .056
Ln 2 / .056 = t ≈ 12.37 yrs
