If Angela has $100 to invest at 2.5% interest per year compounded continuously. How long will it take for Angela’s investment to double? If she invested $1,000, how will the doubling time change?

Answer 1

A= Pe^(rt)

A is 200

P is principal amount (100)

R is rate 2.5%

T is time (we are tasked with figuring out)

200= 100*e^.025(t)

200/100 = e^.025(t)

2= e^.025(t)

ln(2) = .025(t)

ln(2)/.025 = (t)

27.7258872 = t

27.73 = t