Question

How many years are required for an investment to double in value if it is appreciating at the rate of 9​% compounded​ continuously?

Answer 1

Answer:

time required is 7.70 years

Explanation:

given data

interest rate = 9%

solution

we know with the compounded​ continuously rate r and time t amount is

A(t) = A(o) $e^{rt}$     .................1

and we have given amount is double so

A(t) = 2 A(o)

so from equation 1 put the value and we get here

2 A(o) = A(o) $e^{rt}$

ln(2) = 0.09 t

solve it we get time

time t = 7.70 years

so time required is 7.70 years