Compound Interest In Exercises 39-44, complete the table for a savings account in which interest is compounded continuously.
Initial Investment Annual Rate Time to Double Amount After 10 Years
To calculate: The total time required to double the initial investment and the amount in the account after 10 years for a savings account in which interest is compounded continuously.
Initial investment - and annual rate of interest is .
The interest on the savings account is compounded annually.
We can use Growth and decay model
Consider the expression:
We have initial investment, and also the annual rate, .
For doubling the initial investment,
By putting the above values, and in equation (1), we get:
By simplifying further,
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