The Time Required to Double the Amount of an Investment $t = \frac { \ln 2 } {r }$

question 83

Short Answer

The time required to double the amount of an investment at an interest rate r compounded continuously is given by $t = \frac { \ln 2 } {r }$ Find the time required to double an investment at 4%, 5%, and 6%.

---

Definitions:

Cash Inflow

The total amount of money being received by a company, often from its main activities such as sales of goods or services.

Investment Required

The amount of capital needed to undertake a project, purchase assets, or start a business to generate future returns.

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder wealth maximization.

Discount Rate

The interest rate used to discount future cash flows to their present value, often used in investment appraisal.