SOLUTION: at what rate to the nearest hundreth of a percent, would you need to invest 13,000 compounded continuously to reach 21,000 in 7 years?

Question 619558: at what rate to the nearest hundreth of a percent, would you need to invest 13,000 compounded continuously to reach 21,000 in 7 years?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
at what rate to the nearest hundreth of a percent, would you need to invest 13,000 compounded continuously to reach 21,000 in 7 years?
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A(t) = P*e^(rt)
21000 = 13000*e^(7r)
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e^(7r) = 21/13
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Take the natural log of both sides to get:
7r = ln(21/13)
7r = 0.4796
rate = 0.0685 = 6.85%
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Cheers,
Stan H.
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