Math

posted by .

How long will it take for an investment to double in value if it earns 9.5% compounded continuously?

  • Math -

    For r=0.095, with normal compound interest, compounded yearly, the number of years to double at a rate of r% is ln(2)/ln(1+r)=ln(2)/ln(1.095)=7.638 years.

    from A=P(1+r)^n
    take ln both sides,
    ln(A/P)=n ln(1+r)
    n=ln(2)/ln(1+r)

    With continuous compounding,
    A=Pern
    Take logs
    ln(A/P)=ern
    ln(2)=rn
    n=ln(2)/r
    =ln(2)/0.095
    =7.296 years

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    marcia has $220,000 saved for her retirement. How long will it take for the investment to double in value if it earns 6% interest compounded continuously?
  2. Math

    If $8,500 is invested at 6% compounded continuously, how long will it take to double the investment?
  3. Math

    If $8,500 is invested at 6% compounded continuously, how long will it take to double the investment?
  4. math

    How long will it take for an investment of $13,000 to double if the investment earns interest at the rate of 6%/year compounded continuously?
  5. math

    How long it will take for an investment of 1000 dollars to double in value if the interest rate is 9.5 percent per year, compounded continuously?
  6. Math

    How long it will take for an investment of 2000 dollars to double in value if the interest rate is 9.5 percent per year, compounded continuously?
  7. How long will it take the investment to double?

    $3,600 is invested in an account at an annual interest rate of 4.8% compounded continuously. How long, to the nearest tenth of a year, will it take the investment to double in size?
  8. algebra

    How long will it take for an investment to triple in value if it earns 11.75% compounded continuously?
  9. precalculus

    how long will it take an investment of $1,750 to double in value at 8% annual interest compounded continuously?
  10. Algebra

    How long will it take for $1,200 to double if it is invested at 12% annual interest compounded 6 times a year?

More Similar Questions