How long will it take for an investment of 4300 to double if
How long will it take for an investment of $4,300 to double if interest is 3.1% compounded continuously.
Solution
Compound Interest:
Amount = Principal{ 1+ rate/100)^ time
Principal = $ 4,300
Amount = 2x 4300 = $ 8600
8600 = 4300{ 1+ 3.1/100)^t
2 =1.031^t
Taking natural log on both sides:
ln2 = t*ln(1.031)
t = ln2/ln1.031 = 22.7 years it takes to double the investment
