Question 15 of 43
Q.The sum of is compounded continuously, the nominal rate of interest being per annum. In how many years, will the amount be double the original principal ?
Tamil Nadu DgeTamil Nadu HSC (DGE) Commerce Board 2020Subjective· 3mImportance★★★★★
35% · 15/43 Questions
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Start your 14-day free trial to unlock the full solution →With continuous compounding ; doubling gives , so years.
Model. Under continuous compounding the amount satisfies , whose solution (separating variables) is
with principal and nominal rate .
Step 1 — set amount to double the principal. :
Step 2 — take natural logarithms. …
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