SOLUTION: An account is compounded continuously and has an initial deposit of $500. What would the interest rate on the account need to be in order to have $850 after 5 years?

SOLUTION: An account is compounded continuously and has an initial deposit of $500. What would the interest rate on the account need to be in order to have $850 after 5 years?

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Question 1160347: An account is compounded continuously and has an initial deposit of $500. What would the interest
rate on the account need to be in order to have $850 after 5 years?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
850=500e^(rt)=500e^(5r)
1.7=e^5r
ln both sides to remove e
0.531=5r
r=0.106 or 10.6% (round at end)
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