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lutik1710 [3]
3 years ago
13

2. You deposited money into an account that pays 3.425% interest

Mathematics
1 answer:
Assoli18 [71]3 years ago
7 0

Answer:

t=20.24 years

Step-by-step explanation:

-Continuous compounding happens over an infinite number of periods and is given by the formula:

A=Pe^{rt}

Where:

  • A is the future value of the investment
  • P is the principal amount invested
  • r,\ t is the rate of interest and time respectively.

#We substitute the given values in the equation to solve for t:

A=2P\\\\\therefore 2P=Pe^{rt}\\\\2=e^{0.03425t}\\\\t=\frac{In \ 2}{0.03425}\\\\=20.237874\approx20.24\ years

Hence, it takes approximately 20.24 years for the principal to double in value.

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Answer:

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