Priscilla invests $10,000 in an account that compounds interest continuously and earns 11%. How long will it take for her money to double? Round to the nearest tenth of a year.

Mathematics · High School · Thu Feb 04 2021

Answered on

formula :

A=Pe^rt

A = 20,000

P = 10,000

R = 11

20000=10000e^11t

Divide both sides by 10000 to get

2=e^11t

Take the natural log of both sides, we get

ln(2)=ln(e^11t)

ln(2) = .11t 

ln(2)/.11=t 

ln 2 = 0.693147

So,t = 0.693147/0.11

t = 6.3 years

Related Questions