Answered

Determine the amount of time it would take for an investment to double if interest is earned at a rate of 3.75% compounded continuously. Use a graph to find your answer.



Answer :

Given:

The interest rate is 3.75%

The time taken for an investment to double is calculated as,

[tex]\begin{gathered} A=Pe^{rt} \\ A=2P,r=\frac{3.75}{100} \\ 2P=Pe^{0.0375t} \\ t=\frac{\ln(2)}{0.0375} \\ t=18.484 \end{gathered}[/tex]

Answer: The amount of time it wpould take for for an investment to double is approximately 18.484 years.

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