math
posted by Greg .
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!

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.
Respond to this Question
Similar Questions

math
Please help: A continuously compounded account starts with $2500 in principal. The annual interest rate is 11.3%. What is the balance after 15 years? 
algebra 2
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 … 
algebra
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 … 
algebra II
What will be the amount in an account with initial principal $6000 if interest is compounded continuously at an annual rate of 3.25% for 9 years? 
algebra 2
What will be the amount in an account with initial principal $6000 if interest is compounded continuously at an annual rate of 3.25% for 9 years? 
Alg2
Help....Help... Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the … 
Alg 2
Suppose you deposit a principal amount of p dollars in a bank account that pays compound interest. If the annual interest rate r (expressed as a decimal) and the bank makes interest payments n times every year, the amount of money … 
algebra
Hannah invests $3850 dollars at an annual rate of 6% compounded continuously, according to the formula A=Pe^rt, where A is the amount, P is the principal, e=2.718, r is the rate of interest, and t is the time, in years. (a) Determine, … 
algebra
To find the amount A in an account after t years with principal P and an annual interest rate r compounded continuously, you can use the formula 
algebra
Compound interest word problem. Suppose JJ has $1000 that he invests in an account that pays 3.5% interest compounded quarterly. How much money does JJ have at the end of 5 years?