document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=482625>Question 482625</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 interest compounded continuously:<BR>\n" );
document.write( "A=Pe^rt, r=annual interest rate, P=initial investment, A=amount after t years<BR>\n" );
document.write( "..<BR>\n" );
document.write( "900=500e^10r<BR>\n" );
document.write( "900/500=e^10r<BR>\n" );
document.write( "9/5=e^10r<BR>\n" );
document.write( "take log(ln) of both sides<BR>\n" );
document.write( "ln(9/5)=10r*lne<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 = 5.878% </SPAN>\n" );
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