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Mr. Bonds invested $5,000 in an account with an annual interest rate of 6% compounded continuously. Determine how many years, t, he must lea

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Mr. Bonds invested $5,000 in an account with an annual interest rate of 6% compounded continuously. Determine how many years, t, he must leave his money in the account in order to double his investment. Approximately how many years until his investment doubles?

 Feb 2, 2023

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$2 ==$1  x  e^(0.06)t,  where t == number of years

$2 ==e^(0.06)t, solve for t

Take the natural log (ln) of both sides

 

t ==Ln(2) / 0.06==11.552453 years to double your money at 6% compounded continuously.

 Feb 2, 2023

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