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QUESTION 8.1 POINT
If $20,000 is invested at 8.3% compounded continuously, how long, to the nearest tenth of a year will it take before the
investment doubles?

Respuesta :

sqdancefan

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Answer:

  8.4 years

Step-by-step explanation:

The value of P compounded continuously at rate r for t years is ...

  A = Pe^(rt)

Solving for t, we find ...

  t = ln(A/P)/r = ln(2)/0.083 ≈ 8.35117

It will take about 8.4 years for the investment to double.

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