SOLUTION: What interest rate, to the nearest tenth of a percent, is required for an investment subject to continuous compounding to double in 10 years?

Question 1001244: What interest rate, to the nearest tenth of a percent, is required for an investment subject to continuous compounding to double in 10 years?
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
This is the formula for compound interest. In order to isolate r, I am going to rewrite it like this:
Divide both sides by P to simplify:
Now, to bring the exponents down, take the log of both sides:
Divide both sides by t:
Now go and apply this formula to your problem.
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Your problem (easiest solved by using fictitious numbers like I did):
r= log(1000/500)/10
r= log(2)/10
r= 0.301/10
r= 0.03%
All the best.
J
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