Answer:
11.55 years
Step-by-step explanation:
Formula to calculate the final value when the money is compounded continuously is,
Final value = [tex]\text{(Present value)}.e^{rt}[/tex]
Here 'r' = rate of interest
t = duration for the investment
Let the money invested = $x
We have to find the duration in which the present value gets doubled.
Final value = $2x
Rate of interest = 6% per year ≈ 0.06
By substituting these values in the formula,
[tex]2x=x.e^{0.06t}[/tex]
[tex]2=e^{0.06t}[/tex]
ln(2) = [tex]\text{ln}e^{0.06t}[/tex]
0.693147 = 0.06t
t = 11.55 years
Therefore, invested amount will be doubled in 11.55 years.
