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advanced-mathAn investment of $15,000 is compounded continuously at 6.5% annual rate. How long until it reaches $30,000?
A
About 10.7 years
B
About 15 years
C
About 8 years
D
About 12 years
Correct Answer: A
Choice A is the correct answer. Solve for using continuous compounding.
- Formula: .
- Divide: .
- Natural log: .
- Solve: years.
💡 Strategic Tip: Doubling time for continuous growth: .
Choice B is incorrect because this is too long. Choice C is incorrect because this is too short. Choice D is incorrect because this doesn't match the calculation.