A savings account earns 4.62% annual interest, compounded continuously. After approximately how many years will a principal of $500 double?

Question

Kenyon Rollins

7 July, 00:36

+2

Answers (2)

Know the Answer?

Christopher Delacruz · Answer 1

Solve for "years" (t)

A=P e^ (rt)

A=1000

P=500

e=e

r=0.0462

Solve for t: use natural logarithms

(0.0462) t=in 2

t=15 years

Heidi Shepard · Answer 2

2p=pe^rt

2=e^rt

2=e^0.0462t

0.0462t=log (2) / log (e)

t=0.6931471805/0.0462

t=15 years