Homework Help: algebra 2

Posted by David on Friday, May 27, 2011 at 1:02pm.

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.

algebra 2 - MathMate, Friday, May 27, 2011 at 7:19pm
This means that
A/P=2, or
e^(rt)=2
log(e^(rt))=log_e2
rt=log_e2
t=(log_e2)/r
=(log_e2)/0.062 years
=?
algebra 2 - MathMate, Friday, May 27, 2011 at 7:23pm
This means that
A/P=2, or
e^(rt)=2
log(e^(rt))=log_e2
rt=log_e2
t=(log_e2)/r
=(log_e2)/0.062 years
=?

Note:
This is actually the rule of 69.31, as follows:
The number of years to double money multiplied by the interest rate of p% compounded continuously is 69.31.
algebra 2 - kim, Friday, October 28, 2011 at 4:16pm
Eli deposited $1400 at 6.5% interest compounded quarterly. How much money will he have at the end of 8 years?

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