Find the amount of tiem required for an investment to double at a rate of 12.3% if the interest is compounded continuously.

My work:

Assume that P=1

Pe^(rt)

1e^(.123t)=2

.123t=ln2

.123t/.123=ln2/.123

=5.64 years

Yea or nay?

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- Mar 22nd 2009, 08:19 AMpuzzledwithpolynomialsFind the amount of time? (Checking work?)
Find the amount of tiem required for an investment to double at a rate of 12.3% if the interest is compounded continuously.

My work:

Assume that P=1

Pe^(rt)

1e^(.123t)=2

.123t=ln2

.123t/.123=ln2/.123

=5.64 years

Yea or nay? - Mar 22nd 2009, 09:15 AMe^(i*pi)
- Mar 22nd 2009, 09:49 AMHallsofIvy
No, e^(i*pi), that would be "compounded annually". "Compounded continuously" is exactly what puzzledwithpolynomials says. His answer is correct.

- Mar 22nd 2009, 10:14 AMjonah