Find the doubling time of an investment earning 5% interest if interest is compounded continuously

The time is about 14 years

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest in decimal  

t is Number of Time Periods  

e is the mathematical constant number

Let

x ------> the amount of money to be invested

2x ----> the final Investment Value

we have  

substitute in the formula above   and solve for t

Simplify

Apply ln both sides

Remember that

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21/58.

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