document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=185523>Question 185523</A>: <I><SPAN STYLE=\"word-break: break-all;\"> a promisorry note will pay $60,000 at mayurity 20years from now.  If you pay $20,000 for the note now, what rate compounded continously would you earn?  Use the formula A=Pe^rt </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #139167 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=139167\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> a promisorry note will pay $60,000 at maturity 20 years from now. If you pay $20,000 for the note now, what rate compounded continously would you earn? Use the formula A=Pe^rt<BR>\n" );
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document.write( "60,000 = 20,000*e^(20r)<BR>\n" );
document.write( "e^(20r) = 3<BR>\n" );
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document.write( "Take the natural log of both sides to get:<BR>\n" );
document.write( "20r = ln3<BR>\n" );
document.write( "r = (ln3)/20 = 0.05493<BR>\n" );
document.write( "Rate = 5.493%<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );