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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Originally Posted by puzzledwithpolynomials 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? Your sum is right but I think you need to use where
No, e^(i*pi), that would be "compounded annually". "Compounded continuously" is exactly what puzzledwithpolynomials says. His answer is correct.
Originally Posted by HallsofIvy No, e^(i*pi), that would be "compounded annually". "Compounded continuously" is exactly what puzzledwithpolynomials says. His answer is correct. I agree; thus I say yea.
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