document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=608933>Question 608933</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Find the interest rate needed for an investment of $5600 to double in 7 yr if interest is compounded continuously. (Round your answer to two decimal places.)<BR>\n" );
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document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #383420 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><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=383420\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Find the interest rate needed for an investment of $5600 to double in 7 yr if interest is compounded continuously. (Round your answer to two decimal places.)<BR>\n" );
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document.write( "Compound interest formula for continuous compounding: A=Pe^rt, P=initial amt, r=annual interest rate, A=amt after t years.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "A=Pe^rt<BR>\n" );
document.write( "A/P=e^rt=2<BR>\n" );
document.write( "e^7r=2<BR>\n" );
document.write( "take log of both sides<BR>\n" );
document.write( "7r*lne=ln2<BR>\n" );
document.write( "lne=1<BR>\n" );
document.write( "r=ln2/7<BR>\n" );
document.write( "r&#8776;9.90%<BR>\n" );
document.write( "note: initial investment of $5600 not needed for solution<BR>\n" );
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