How long will it take a principal investment of $6000 to grow to $12,000 if the investment earns interest at the rate of 8%/year compounded continuously?
The formula for continuously compounded interest is given by:
e=Mathematical constant e
r=rate of interest
t=Time in years
According to question;
P=$6000, A=12000, r=8%
Therefore it will take 8.664 years for theprincipal investment of $6000 to grow to $12,000.
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