document.write( "Question 1119112: Complete the table assuming continuously compounded interest. (Round your answers to two decimal places.) \r
\n" ); document.write( "\n" ); document.write( "Initial Investment: $900
\n" ); document.write( "Annual % Rate: UNKNOWN
\n" ); document.write( "Time to Double (Years): UNKNOWN
\n" ); document.write( "Amount after 10 Years: $1305 \n" ); document.write( "

Algebra.Com's Answer #734587 by ikleyn(52855) $\"\"$ $\"About$

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document.write( "The model is  \r\n" );
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document.write( "y = 900*e^(k*t).\r\n" );
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document.write( "You are given that y = 1305 at t =10.  Write it as an equation:\r\n" );
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document.write( "1305 = 900*e^(k*10).\r\n" );
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document.write( "It is equivalent to  (after dividing both sides by 900):\r\n" );
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document.write( " = ,   or    = 1.45.\r\n" );
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document.write( "Take the natural logarithm of both sides:\r\n" );
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document.write( "k*10 = ln(1.45)  ====>  10k = 0.37156  ====>  k =  = 0.037156.\r\n" );
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document.write( "Thus the model is  y = .\r\n" );
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document.write( "Time to double:\r\n" );
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document.write( "1800 =   ====>  \r\n" );
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document.write( "2 = .\r\n" );
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document.write( "Take the natural logarithm of both sides:\r\n" );
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document.write( "ln(2) = 0.037156*t  ====>  t =  =  = 18.65 years.\r\n" );
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document.write( "Answer. Annual rate is   = 1.038.\r\n" );
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document.write( "        Equivalent annual percentage rate is 3.8% (considered as annually compounded)\r\n" );
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document.write( "        Time to double is 18.65 years.\r\n" );
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