A = Pert,
where P is the initial investment and r is the interest rate.

1.How long will it take for $2000 to double if it is invested at 13% interest compounded continuously?

2.What rate of interest compounded continuously is needed for an investment of $500 to grow to $900 in 10 years?

Question

A = Pert,
where P is the initial investment and r is the interest rate.

1.How long will it take for $2000 to double if it is invested at 13% interest compounded continuously?

2.What rate of interest compounded continuously is needed for an investment of $500 to grow to $900 in 10 years?

amistre64 · Answer

perts double in ln(2)/r

amistre64 · Answer

ln(900/500)/10 is the rate of the other

anonymous · Answer

can i get some kind of steps?

amistre64 · Answer

A = Pe^rt  ; divide off the P

A/P = e^rt  ; ln the sides

ln(A/P) = rt  ; and depending on what your looking for, divide of the rate or the time to solve

amistre64 · Answer

I thought the algebra was self evident ....