how long will it take for an investment of $2000 to double in value if the interest rate is 6.5% per year, - brainly.com (2024)

Final answer:

The investment will take approximately 10.63 years to double in value with continuous compounding.

Explanation:

To find out how long it takes for an investment to double in value with continuous compounding, we can use the formula:

t = (ln(2)) / r

Where t is the time in years, ln(2) is the natural logarithm of 2, and r is the interest rate (in decimal form).

For this question, we have an interest rate of 6.5% per year, so r = 0.065. Plugging that into the formula, we get:

t = (ln(2)) / 0.065 ≈ 10.63 years

Therefore, it will take approximately 10.63 years for the investment to double in value with continuous compounding.

Learn more about Continuous Compound Interest here:

brainly.com/question/32594953

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