Solve the problem.
-How long will it take for an investment to double in value if it earns 4.25% compounded continuously? Round your answer to three decimal places.
A)25.85 yr
B)16.309 yr
C)8.155 yr
D)17.715 yr

Question

Quizplus · Accepted Answer

The formula to calculate the time $ t $ for an investment to double when interest is compounded continuously is given by $ t = \frac{\ln(2)}{r} $, where $ r $ is the annual interest rate expressed as a decimal. For an interest rate of 4.25%, $ r = 0.0425 $. Plugging the values into the formula gives $ t = \frac{\ln(2)}{0.0425} \approx 16.309 $ years.

Solve the Problem. -How Long Will It Take for an Investment to Double