Problema Solution
you want to invest $10,000 dollars. how long will it take to double your investment at an annual interest rate of 10%, compounded continuously? (round answer to the nearest year). A=Pe^rt
Answer provided by our tutors
P = $10,000
t = ?
r = 0.10 or 10%
A = 2P
A=Pe^(rt)
2P=Pe^(rt)
e^(rt) = 2
rt = ln 2
t = (1/r) ln 2
t = (1/0.10) ln 2
t = 7 years (rounded to the nearest year)
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it takes 7 years to double your investment.