Tom invests $10,000 in a savings account that offers 3.5 percent interest, compounded continuously.
in 10 years tom will have earned $ in interest, and in years the investment will double. (use the rule of 70 where required.)

Part 1:

Amount invested in savings = $10000

APR = 3.5% or 0.035

t = 10 years

As given the account is compounding continuously, so the future value of compound continuously is given by:

Putting these values in formula we get;

A = $14,190.68

Interest earned = dollars

Part 2:

The rule of 70 is used to get a rough estimate of the time, in which the investment will double. So, we divide 70 by the APR to get the years.

Time =

Time = 20 years

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step-by-step explanation: