Question

The amount of money in an account with continuously compounded interest is given by the formula A = Pert, where P is the principal, r is the annual interest rate, and t is the time in years. Calculate to the nearest tenth of a year how long it takes for an amount of money to double if interest is compounded continuously at 5.2%.

Answer 1

Hi there

The formula in this situation is
2=e^0.052t
Solve for t
T=(log(2)÷log(e))÷0.052
T=13.3 years round 13 years

Hope it helps