You deposit 1000 into an account at 5% interest compounded continuously. How long will it take for your money to double?

Question

It's hard

Answer 1

A = p*e^rt

Given:

A = Final amount

P = Principal or initial amount

 

r = rate of interest

 

t = time in years

unknown:

What you are looking for is how long it will take your money to double, in other words how long it will take for that 1000 dollars of yours to be 2000?

 

Let's substitute

2000 = 1000*e^0.05t

2000/1000 = e^0.05t      (divide both sides by 1000)

2 = e^0.05t   (Take natural log on both sides)

 

ln2 = lne^0.05t      (lne = 1)

 

ln2 = 0.05t

 

ln2/0.05 = t

13.86 = t

 

it will take about 14 years so sit tight:-)