Problema Solution

Suppose that $2500 is invested at an interest rate of 5.5% per year, compounded continuously. After how many years will the initial investment be doubled?

Do not round any intermediate computations, and round your answer to the nearest hundredth

Answer provided by our tutors

Suppose that $2500 is invested at an interest rate of 5.5% per year, compounded continuously. After how many years will the initial investment be doubled?

 

P = $2500

A = $5000

r = 5.5%

Answer:  Number of years = 12.6027 years = 13 years