SOLUTION: At what annual rate compounded continously will $1000 have to be invested to amount to $2,500 in 10 years?

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Question 599353: At what annual rate compounded continously will $1000 have to be invested to amount to $2,500 in 10 years?
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
At what annual rate compounded continously will $1000 have to be invested to amount to $2,500 in 10 years?
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A(t) = Ao*e^(rt)
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2500 = 1000*e^(10r)
e^(10r) = 2.5
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10r = ln(2.5)
r = (1/10)*ln(2.5)
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r = 0.0916 ~ 9%
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cheers,
Stan H.
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