Question
Thor invests some money in an account earning 8% interest, compounded continuously. After how many years will he double his investment? [Use the formla A = Pert and round answer to the nearest tenth.]
A) 6.2 years
B) 7.5 years
C) 8.7 years
D) 9.9 years
"I think the answer is B"
A) 6.2 years
B) 7.5 years
C) 8.7 years
D) 9.9 years
"I think the answer is B"
Answers
Henry
Po*e^(rt) = 2Po.
Divide both sides by Po:
e^rt = 2.
rt = 0.08t.
e^0.08t = 2.
0.08t*Log e = Log 2.
0.08t = Log2/Log e = 0.693
t = 8.7 yrs.
Divide both sides by Po:
e^rt = 2.
rt = 0.08t.
e^0.08t = 2.
0.08t*Log e = Log 2.
0.08t = Log2/Log e = 0.693
t = 8.7 yrs.