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26 August, 01:02

A sum is invested at 4% continuous interest. This means that its value grows exponentially with k equaling the decimal rate of interest. Find, to the nearest tenth of a year, the time required for the investment to double in value.

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  1. 26 August, 01:16
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    T = 72/4 = 18years

    T = 20years (to the nearest tenth)

    Step-by-step explanation:

    Using the rule of 72, which is used to estimate the number of years for a given investment to double at a given interest rate.

    Doubling time = 72/interest rate

    T = 72/r

    Rate r (in percentage) = 4%

    Time T (in years)

    T = 72/4 = 18years

    T = 20years (to the nearest tenth)
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