How long will it take for an investment of $2000 to double in value if the inter

Algebra
Tutor: None Selected Time limit: 1 Day

How long will it take for an investment of $2000 to double in value if the interest rate is 8.5% per year, compounded continuously? (Round your answer to two decimal places.)
 

 yr

Jul 17th, 2015

Thank you for the opportunity to help you with your question!

doubled means becomin 4000

A = Pe^rt

4000/2000 = e^rt

e^rt  = 2

apply ln on both side

ln e^rt = ln 2

rt = ln 2

t  =  ln 2 / .085

    = 8.15  years.................................................ANSWER


        8. 15 years



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Jul 17th, 2015

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