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2 April, 22:13

If you deposit 1,000 into an account that pays 4% interest compounded continuously, how long will it take the account to grow to 2,000?

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  1. 2 April, 22:41
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    You will need to use this formula:

    Years = natural logarithm (Total / Principal) / rate

    Years = natural logarithm (2,000 / 1,000) / rate

    Years = natural logarithm (2) /.04

    Years = 0.69314718056 /.04

    Years = 17.328679514

    About 17.3 years
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