Friday

September 19, 2014

September 19, 2014

Posted by **Bill** on Friday, December 10, 2010 at 12:23am.

- Math -
**MathMate**, Friday, December 10, 2010 at 10:24amContinuous compounding:

future value = present value * e^{rt}

where t=number of periods, and r=rate

future value/present value = 2

or

e^{rt}=2

e^{0.06t}=2

take natural log on both sides,

0.06t = ln(2)

t=11.55 years.

The rule of 69

==============

In fact, you can apply the rule of 69 for continuous compounding:

the time (in years) to double is 69.31 divided by the annual rate in %.

**Answer this Question**

**Related Questions**

Math - If $8,500 is invested at 6% compounded continuously, how long will it ...

math - How long will it take for an investment of $13,000 to double if the ...

Math - How long will it take for an investment to double in value if it earns 9....

Calculus - An investment grows ar a rate of 2.5% each year compounded ...

Integrated Trig - How many years will it take for an initial investment of $5,...

log - how long will it take $40,000 invested at 9% compounded continuously to ...

Math - How long it will take for an investment of 2000 dollars to double in ...

math - How long it will take for an investment of 1000 dollars to double in ...

math - marcia has $220,000 saved for her retirement. How long will it take for ...

Algebra II - I'm pretty confused about these problems. We're learning growth and...