SOLUTION: What interest rate, to the nearest tenth of a percent, is required for an investment subject to continuous compounding to double in 10 years?

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Question 1001244: What interest rate, to the nearest tenth of a percent, is required for an investment subject to continuous compounding to double in 10 years?
Answer by addingup(3677) About Me  (Show Source):
You can put this solution on YOUR website!
A=Pe%5Ert This is the formula for compound interest. In order to isolate r, I am going to rewrite it like this:
e%5Ert%2AP=A Divide both sides by P to simplify:
e%5Ert=A%2FP Now, to bring the exponents down, take the log of both sides:
rt=log%28A%2FP%29%2B%282i%29Pi%2An Divide both sides by t:
r=+ln%28A%2FP%29%2Ft Now go and apply this formula to your problem.
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Your problem (easiest solved by using fictitious numbers like I did):
r= log(1000/500)/10
r= log(2)/10
r= 0.301/10
r= 0.03%
All the best.
J