How many years does it take to double your money if the continuously-compounded interest rate is 6%?
A) 11.55
B) 12.66
C) 13.77
D) 16.66

Question

How many years does it take to double your money if the continuously-compounded interest rate is 6%? 
A) 11.55
B) 12.66
C) 13.77
D) 16.66

Quizplus · Accepted Answer

The time to double an investment with continuous compounding can be found using the formula $ t = \frac{\ln(2)}{r} $, where $ r $ is the interest rate. Substituting $ r = 0.06 $ gives $ t = \frac{\ln(2)}{0.06} \approx 11.55 $ years.

How Many Years Does It Take to Double Your Money