suppose $5,000 is invested in an account at an annual interest rate of 2.7% compounded continuously. how long (to the nearest tenth of a year) will it take the investment to double in size?
The basic equation for continuous compounding is as follows: [tex]A=Pe^{rt}[/tex] Plugging in the given values gives: [tex]10000=5000e^{0.027t}[/tex] Dividing both sides by 5000, we get: [tex]2=e^{0.027t}[/tex] Take natural logs of each side: [tex]ln\ 2=0.027t[/tex] from which we find that t = 25.67 years.
