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avatar+483 

How long does it for a deposit of $1200 to double at 8% compounded continously??

 

 

___ years and ____ days????

 Mar 26, 2020
 #1
avatar+20850 
+1

The formula:  A  =  P·er·t

A is the final amount     $2400

P is the principal           $1200

r is the rate                      0.08

y is the number of years

 

A  =  P·er·t                             --->     2400  =  1200·e0.08 · t

Divide both sides by 1200     --->    2  =  e0.08 · t

Take the ln of both sides:      --->    ln(2)  =  ln( e0.08 · t )

Property of logs:                   --->    ln(2)  =  t ·ln( e0.08 )

Property of logs:                   --->    ln(2)  =  t · 0.08

Divide:                                  --->   t  =  ln(2) / 0.08  =  8.66434

 

This is years, you will need to switch into years and days ...

 Mar 26, 2020
 #2
avatar+1956 
+1

Nice, Geno!

 Mar 26, 2020

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