Sally invests $5000 in an account earning 8% interest, compounded continuously. After how many years will she double her investm ent? [Use the formla A = Pert and round answer to the nearest tenth.
2 answers:
Answer:
8.7 years
Step-by-step explanation:
8.7 years is correct. Plug in 10000 for A, divide both sides by 500, then take the natural logarithm of both sides to get ln(2) = .08t. Divide by .08 to get the answer.
Double is double, so you can solve .. 2 = 1*e^(.08t) and get the correct value of t. Taking logs, .. ln(2) = .08t .. ln(2)/.08 = t ≈ 8.7 . . . . years
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