SOLUTION: What interest rate is needed for $12000 to double after 10 years if compounded continuously?

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Question 1172939: What interest rate is needed for $12000 to double after 10 years if compounded
continuously?
Answer by VFBundy(438) About Me  (Show Source):
You can put this solution on YOUR website!
Total = Pe%5Ert

24000 = 12000e%5Er%2810%29

24000 = 12000e%5E%2810r%29

2 = e%5E%2810r%29

2 = 2.718%5E%2810r%29

log%282.718%2C2%29+=+10r

0.6932+=+10r

r+=+0.0693

The interest rate needed to double the $12,000 after 10 years is 6.93%.