Problema Solution
How long does it take for a deposit of $600 to double at 2% compounded continuously
Answer provided by our tutors
P = $600
r = 0.02 or 2%
t = ?
A = 2P = 2*600 = $1,200
A = P*e^(r*t)
1200 = 600*e^(0.02t)
e^(0.02t) = 2
0.02t = ln 2
t = (ln 2)/0.02
t = 34.66 years
it takes 34.66 years for the deposit to double.