Homework Help: math

Posted by Greg on Sunday, April 22, 2007 at 2:56pm.

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 hundredth of a year how long it takes for an amount of money to double if interest is compounded continuously at 6.5%.

please help!

the formula is A=Pe^rt, I assume yours was a typo

Consider any Principal, eg P=100
so you want
200 = 100e^(.065t)
2 = e^.065t
.065t=ln 2

I got t=10.66 using my calculator

so you can use anything you want for the principal?

yes
we could have simply used the principal P
Since we want it to "double" the amount would then be 2P

2P = P e^(.065t), divide by P and we get

2 = e^.065t like before

oh okay, thanks!

math - David, Friday, May 27, 2011 at 1:00pm
The amount of money in an account with continuously compounded interest is given by the formula A=Pe^rt , where P is the principal, r is the annual interest rate, and t is the time in years. Calculate to the nearest hundredth of a year how long it takes for an amount of money to double if interest is compounded continuously at 6.2%. Round to the nearest tenth.

Answer this Question

Related Questions

algebra - The amount of money in an account with continuously compounded ...
algebra 2 - The amount of money in an account with continuously compounded ...
math - Suppose that you have $12,500 to invest over a 4 year period. There are ...
math - If $5,600 is deposited into an account paying 5% interest compounded ...
Math - Using the compound interest formula A = P (1+ ((r)/ (n)) ^nt Find the ...
Math - Use the compound interest formula to solve: $18,000 is invested in an ...
Calc - How much money will we have in 6 months if we invest $1000 into an ...
math - An initial investment of $1240 is appreciated for 17 years in an account ...
math - Please help: A continuously compounded account starts with $2500 in ...
Algebra - Use the compound interest formula $18,000 is invested in an account ...

For Further Reading

First Name:
School Subject:
Answer: