How do you calculate to the nearest hundredth of a year how long it takes for an amount of money to double if interest is compounded continuously at 3.8%?
This is an example of an exponential function.
These are allways of the form
With an interest rate of 3.8%, your growth factor will be:
To double your money the ratio of
Two ways to solve this:
You could even say it would be on day 215 of the 19th year, but that was not the question.