Money is invested at interest rate r a decimal compounded co
Money is invested at interest rate r (a decimal), compounded continuously. Express the time required for the money to quadruple, as a function of r.
Quadrupling time as a function of interest rate=
Solution
Money is invested at interest rate r (a decimal), compounded continuously
amount after time t , A=Aoert, where Ao is initial amount , r is rate of interest , time is t
money to quadruple
=>4Ao=Aoert
=>ert=4
=>rt =ln(4)
=>t =(ln4)/r
the time required for the money to quadruple t = f(r)=(ln4)/r
