# SOLUTION: Find the interest rate needed for an investment of \$5600 to double in 7 yr if interest is compounded continuously. (Round your answer to two decimal places.)

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 Question 608933: Find the interest rate needed for an investment of \$5600 to double in 7 yr if interest is compounded continuously. (Round your answer to two decimal places.) Answer by lwsshak3(6469)   (Show Source): You can put this solution on YOUR website!Find the interest rate needed for an investment of \$5600 to double in 7 yr if interest is compounded continuously. (Round your answer to two decimal places.) ** Compound interest formula for continuous compounding: A=Pe^rt, P=initial amt, r=annual interest rate, A=amt after t years. For given problem: A=Pe^rt A/P=e^rt=2 e^7r=2 take log of both sides 7r*lne=ln2 lne=1 r=ln2/7 r≈9.90% note: initial investment of \$5600 not needed for solution