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_{e}2

rt=log_{e}2

t=(log_{e}2)/r

=(log_{e}2)/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_{e}2

rt=log_{e}2

t=(log_{e}2)/r

=(log_{e}2)/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?

- algebra 2 -
**Anonymous**, Tuesday, April 8, 2014 at 1:18pm
An initial amount of money is placed in an account at an interest rate of per year, compounded continuously. After three years, there is in the account. Find the initial amount placed in the account. Round your answer to the nearest cent.

- algebra 2 -
**lizzy**, Monday, April 14, 2014 at 12:00am
0.3=10^06x

## Answer This Question

## Related Questions

- algebra - The amount of money in an account with continuously compounded ...
- math - The amount of money in an account with continuously compounded interest ...
- algebra - To find the amount A in an account after t years with principal P and ...
- algebra 2 - What will be the amount in an account with initial principal $6000 ...
- algebra II - What will be the amount in an account with initial principal $6000 ...
- Alg 2 - Suppose you deposit a principal amount of p dollars in a bank account ...
- Alg2 - Help....Help... Suppose you deposit a principal amount of p dollars in a ...
- Algebra - A company invests $15,000.00 in an account that compounds interest ...
- Algebra B - I can't figure this out, please help... A company invests $15,000.00...
- algebra - A continuously compounded account starts with $1500 in principal. The...

More Related Questions