document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=869687>Question 869687</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The balance of a saving account compounded continuously will increase by 70% in 12 years. Find the annual interest rate of the account </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #524403 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=524403\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The balance of a saving account compounded continuously will increase by 70% in 12 years. Find the annual interest rate of the account.<BR>\n" );
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document.write( "Formula for continuous compounding: A=Pe^rt, P=initial investment, r=annual interest rate, t=period in years, A=amt after t years<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "t=12<BR>\n" );
document.write( "A/P=e^rt<BR>\n" );
document.write( "1.7=e^rt<BR>\n" );
document.write( "take log of both sides<BR>\n" );
document.write( "ln(1.7)=rt*lne<BR>\n" );
document.write( "lne=1<BR>\n" );
document.write( "rt=ln(1.7)<BR>\n" );
document.write( "r=ln(1.7)/t=ln(1.7)/12&#8776;4.42%<BR>\n" );
document.write( "annual interest rate of the account=4.42% </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );