How long will it take $1,700 to double if invested at 6% annual interest compounded 6 times a year? What about if it was compounded continuously?

Answer 1

A. The equation would be 3400=1700(1+.06/6)^6t t = 11.61 years

B. This equation would be 3400 = 1700e^.o6t t = 11.55 years

A. 3400/1700 = (1+.06/6)^6t

2 = (1+.06/6)^6t

ln2 = ln(1+.06/6)^6t = 6tln(1.01)

t = (ln2/ln1.01)/6

t = 11.61

B. 3400 = 1700e^.o6t

2 = e^.o6t

ln2 = .06t

t = ln2/.06

t = 11.55