SOLUTION: An amount of $1000 is invested and interest is compounded continuously. Find the annual relative growth rate for the investment to grow to $2500 in 10 years. Solve algebraically.

Algebra ->  Exponential-and-logarithmic-functions -> SOLUTION: An amount of $1000 is invested and interest is compounded continuously. Find the annual relative growth rate for the investment to grow to $2500 in 10 years. Solve algebraically.      Log On


   

Question 863621: An amount of $1000 is invested and interest is compounded continuously. Find the annual relative growth rate for the investment to grow to $2500 in 10 years. Solve algebraically.
Answer by ewatrrr(24785) About Me  (Show Source):
You can put this solution on YOUR website!
 

Hi,

A = Pe^(rt)

2500%2F1000+=+e%5E%2810r%29

ln(2.5)/10 = r = 9.16%