Question
You put $1700 into an account at 8% per year compounded continuously.
a) How long will it be until you have $2000?
b) What is the doubling time for this money?
a) How long will it be until you have $2000?
b) What is the doubling time for this money?
Answers
Henry
P = Po*e^rt.
a. rt = 0.08t
P = 1700*e^0.08t = $2000
e^0.08t = 2000/1700 = 1.176
0.08t*Lne = Ln1.176
0.08t*1 = 0.1625
t = 2.03 Years.
b. P = 1700*e^0.08t = 3400
Solve for t.
a. rt = 0.08t
P = 1700*e^0.08t = $2000
e^0.08t = 2000/1700 = 1.176
0.08t*Lne = Ln1.176
0.08t*1 = 0.1625
t = 2.03 Years.
b. P = 1700*e^0.08t = 3400
Solve for t.