document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1118990>Question 1118990</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Complete the table assuming continuously compounded interest. (Round your answers to two decimal places.) \r<BR>\n" );
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document.write( "Initial Investment: UNKNOWN<BR>\n" );
document.write( "Annual % Rate: UNKNOWN<BR>\n" );
document.write( "Time to Double: 11 Years<BR>\n" );
document.write( "Amount after 10 Years: $1800 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #734420 by </B><A HREF=/tutors/aboutme.mpl?userid=htmentor><B>htmentor(1343)</B></A><img src=\"/images/stars/stars-12.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=htmentor><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/cgi-bin/show-face.mpl?user=htmentor><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=734420\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> The formula for continuously compounded interest is:<BR>\n" );
document.write( "A = P*e^(rt), where A = amount, P = principal, r = the interest rate, t = time<BR>\n" );
document.write( "Given: Time to double is 11 years; amount after 10 years = 1800<BR>\n" );
document.write( "Thus 2P = P*e^(r*11)<BR>\n" );
document.write( "Solving for r gives r = ln(2)/11<BR>\n" );
document.write( "Now we can find P:<BR>\n" );
document.write( "1800 = P*e^(ln(2)/11*10) -> P = 1800/e^(ln(2)/11*10) = $958.54 </SPAN>\n" );
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