A retirement savings plan pays 4.5% interest, compounded continuously. How long will it take for a $1000 investment in this plan to double? A(t) = Pe^rt
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Step 1: Set up the formula for continuously compounded interest: \(A(t) = Pe^{rt}\), where \(A(t)\) is the final amount, \(P\) is the principal amount, \(r\) is the interest rate, and \(t\) is the time in years. Show more…
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