Problema Solution
Suppose that $2500 is invested at an interest rate of 3.5% 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
5000 = 2500(1+3.5%)^n
5000/2500 = 1.035^n
taking natural log
ln(2) = n ln(1.035)
n = ln(2)/ln(1.035)
n = 20.15