SOLUTION: An investment of $20,000.00 will be doubled in 14 years with interest compounded continuously. Find the annual interest rate
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Question 114764: An investment of $20,000.00 will be doubled in 14 years with interest compounded continuously. Find the annual interest rate
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
An investment of $20,000.00 will be doubled in 14 years with interest compounded continuously. Find the annual interest rate
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A(t) = Pe^(rt)
40000 = 20000e^(14r)
2 = e^(14r)
14r = ln2
r = ln2/14
r = 0.0495
Rate = 4.95%
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Cheers,
Stan H.
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