document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=482635>Question 482635</A>: <I><SPAN STYLE=\"word-break: break-all;\">  What rate of interest compounded continuously is needed for an investment of $500 to grow to $900 in 10 years? </SPAN>\n" );
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document.write( "Compound Interest Formula For Continuous Compounding: A=Pe^rt, P=initial investment, r=annual rate of interest, A=amount after t years.<BR>\n" );
document.write( "For given problem:\r<BR>\n" );
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document.write( "900=500e^10r<BR>\n" );
document.write( "900/500=e^10r=9/5<BR>\n" );
document.write( "take log of both sides<BR>\n" );
document.write( "10r*lne=ln (9/5)<BR>\n" );
document.write( "log of base=1<BR>\n" );
document.write( "10r=ln(9/5)=.5878<BR>\n" );
document.write( "r=.5878/10=.05878<BR>\n" );
document.write( "ans:<BR>\n" );
document.write( "Annual rate of interest compounded continuously needed=5.9% </SPAN>\n" );
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