The formula A=Pe^rt describes the accumulated value, A, of a sum of money, P the principal, after t years at annual percentage rate r(in decimal form) compounded continuously.

Question

Complete the table for a savings account subject to continuous compounding. Amount invested-$5000 Annual interest rate 8% Accumulated amount-double the amount invested Time t in years-?

T=_ years(Do not round until the final answer/ The round to one decimal place as needed.) Thank you for all the help

Answer 1

2 = e^.08t

take lns

ln2 = .08t

t = ln2/.08 = doubling time

= about 8.66

= about 8.7 years

for $5,000 to become $10,000 at continuously compounded interest rate of 8%