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Sandy is tracking the performance of one of Atlantic Cycles’ savings accounts. $20,000 was deposited into this account, which earns 1.25% interest, compounded continuously. How many years will it take until the account balance doubles, if no withdrawals or additional deposits are made? Solution A = P(1+r/100)t P = 20000 $ r = 1.25% A= 2*20000 = 40000 40000 = 20000 (1+0.0125)t 40000/20000 = 1.0125t 2 = 1.0125t log 2 = t log 1.0125 t = 56 years.

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Sandy is tracking the performance of one of Atlantic Cycles’ savings accounts. $20,000 was deposited into this account, which earns 1.25% interest, compounded continuously. How many years will it take until the account balance doubles, if no withdrawals or additional deposits are made? Solution A = P(1+r/100)t P = 20000 $ r = 1.25% A= 2*20000 = 40000 40000 = 20000 (1+0.0125)t 40000/20000 = 1.0125t 2 = 1.0125t log 2 = t log 1.0125 t = 56 years

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  • 1. Sandy is tracking the performance of one of Atlantic Cycles’ savings accounts. $20,000 was deposited into this account, which earns 1.25% interest, compounded continuously. How many years will it take until the account balance doubles, if no withdrawals or additional deposits are made? Solution A = P(1+r/100)t P = 20000 $ r = 1.25% A= 2*20000 = 40000 40000 = 20000 (1+0.0125)t 40000/20000 = 1.0125t 2 = 1.0125t log 2 = t log 1.0125 t = 56 years