document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=219555>Question 219555</A>: <I><SPAN STYLE=\"word-break: break-all;\"> what interest rate is required for an investment with continuously compounded interest to double in 6 years </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #165077 by </B><A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><B>jim_thompson5910(35256)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=jim_thompson5910><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=165077\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> \r<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A=Pe%5E%28rt%29 ALIGN=MIDDLE  ALT=\"A=Pe%5E%28rt%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Start with the continuous compounding interest formula.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500=250%2Ae%5E%28r%2A6%29 ALIGN=MIDDLE  ALT=\"500=250%2Ae%5E%28r%2A6%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Plug in <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=A=500 ALIGN=MIDDLE  ALT=\"A=500\"   DISABLED_style= \"max-width:90%; height:auto;\" >, <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=P=250 ALIGN=MIDDLE  ALT=\"P=250\"   DISABLED_style= \"max-width:90%; height:auto;\" >, and <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=t=6 ALIGN=MIDDLE  ALT=\"t=6\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500=250%2Ae%5E%286%2Ar%29 ALIGN=MIDDLE  ALT=\"500=250%2Ae%5E%286%2Ar%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Rearrange the terms.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500%2F250=e%5E%286%2Ar%29 ALIGN=MIDDLE  ALT=\"500%2F250=e%5E%286%2Ar%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Divide both sides by <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=250 ALIGN=MIDDLE  ALT=\"250\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=2=e%5E%286%2Ar%29 ALIGN=MIDDLE  ALT=\"2=e%5E%286%2Ar%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Divide <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=500%2F250 ALIGN=MIDDLE  ALT=\"500%2F250\"   DISABLED_style= \"max-width:90%; height:auto;\" > to get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=2 ALIGN=MIDDLE  ALT=\"2\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=ln%282%29=ln%28e%5E%286%2Ar%29%29 ALIGN=MIDDLE  ALT=\"ln%282%29=ln%28e%5E%286%2Ar%29%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Take the natural log of both sides.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=ln%282%29=6%2Ar%2Aln%28e%29 ALIGN=MIDDLE  ALT=\"ln%282%29=6%2Ar%2Aln%28e%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > Pull down the exponent using the identity <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=ln%28x%5Ey%29=y%2Aln%28x%29 ALIGN=MIDDLE  ALT=\"ln%28x%5Ey%29=y%2Aln%28x%29\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=ln%282%29=6%2Ar%2A1 ALIGN=MIDDLE  ALT=\"ln%282%29=6%2Ar%2A1\"   DISABLED_style= \"max-width:90%; height:auto;\" > Evaluate <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=ln%28e%29 ALIGN=MIDDLE  ALT=\"ln%28e%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > to get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1 ALIGN=MIDDLE  ALT=\"1\"   DISABLED_style= \"max-width:90%; height:auto;\" >.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=ln%282%29=6%2Ar ALIGN=MIDDLE  ALT=\"ln%282%29=6%2Ar\"   DISABLED_style= \"max-width:90%; height:auto;\" > Multiply.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=0.693147=6%2Ar ALIGN=MIDDLE  ALT=\"0.693147=6%2Ar\"   DISABLED_style= \"max-width:90%; height:auto;\" > Evaluate <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=ln%282%29 ALIGN=MIDDLE  ALT=\"ln%282%29\"   DISABLED_style= \"max-width:90%; height:auto;\" > to get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=0.693147 ALIGN=MIDDLE  ALT=\"0.693147\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=0.693147%2F6=r ALIGN=MIDDLE  ALT=\"0.693147%2F6=r\"   DISABLED_style= \"max-width:90%; height:auto;\" > Divide both sides by <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=6 ALIGN=MIDDLE  ALT=\"6\"   DISABLED_style= \"max-width:90%; height:auto;\" > to isolate 'r'\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=0.115525=r ALIGN=MIDDLE  ALT=\"0.115525=r\"   DISABLED_style= \"max-width:90%; height:auto;\" > Divide <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=0.693147%2F6 ALIGN=MIDDLE  ALT=\"0.693147%2F6\"   DISABLED_style= \"max-width:90%; height:auto;\" > to get <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=0.115525 ALIGN=MIDDLE  ALT=\"0.115525\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=r=0.115525 ALIGN=MIDDLE  ALT=\"r=0.115525\"   DISABLED_style= \"max-width:90%; height:auto;\" > Rearrange the equation.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=r=0.1155 ALIGN=MIDDLE  ALT=\"r=0.1155\"   DISABLED_style= \"max-width:90%; height:auto;\" > Round to the nearest ten-thousandth.\r<BR>\n" );
document.write( "<BR>\n" );
document.write( "<BR>\n" );
document.write( "\n" );
document.write( "So an interest rate of about 11.55% (don't forget to multiply by 100 to convert the decimal to a percent) will make the initial investment of $250 grow to $500 in 6 years.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );