Asked by Anonymous

You want to make an investment in a continuously compounding account earning 1.2% interest. How many years will it take for your investment to double in value? Round the logarithm value to the nearest thousandth. Round the answer to the nearest year.
I got 6 years, is this correct?
Answered by Reiny
1 e^.012t = 2
take ln of both sides
ln e^.01t = ln2
.012t ln e = ln 2 , but ln e = 1
.12t = ln 2
t = ln2/.012 = 57.76 years
or 58 years to the nearest year.