Determine the doubling time of the investment.
-8% APR compounded continuously
A) 8.66 years
B) 6.93 years
C) 17.33 years
D) 13 years

Name: Determine the doubling time of the investment. -8% APR compounded continuously A) 8.66 years B) 6.93 years C) 17.33 years D) 13 years
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Question

Quizplus · Accepted Answer

The doubling time for continuous compounding is given by the formula t = (ln 2) / r, where r is the annual interest rate. In this case, r = 0.08, so t = (ln 2) / 0.08 = 8.66 years.

Determine the Doubling Time of the Investment