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Yesterday, 14:07

You want to invest

$10,000 dollars. How long will it take to double your investment at an annual

interest rate of 10%, compounded continuously? (Round your answer to the

nearest year)

Using equation A=Pe^rt

^=exponent

+1
Answers (1)
  1. Yesterday, 17:42
    0
    Using the equation > A = Pe^rt

    20000 = 10000e^0.1t > 10% = 0.1

    2 = e^0.1t

    log 2 = log e^0.1t > log to the base e

    log 2 = 0.1t * 1 log e to the base e = 1

    0.6931 = 0.1t

    t = 6.931

    = 7 years
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