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Compound Interest
   Problem 1.3 (complexity 2). Solution

How long will it take to double the principal if money is invested at   compounded   times per year?

Solution

Use the formula for compound interest with P = 1 , A = 2 ,   , and   .

 
Taking natural logarithms on both sides,
 
Using the power rule for logarithms gives
 
 

Use a calculator.
 Answer:  


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