SOLUTION: Alice invests $18,000 at age 30 from the signing bonus of her new job. She hopes the investments will be worth $36,000 when she turns 41. If the interest compounds continuously, ap
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Question 1128550: Alice invests $18,000 at age 30 from the signing bonus of her new job. She hopes the investments will be worth $36,000 when she turns 41. If the interest compounds continuously, approximately what rate (as a percent) of growth will she need to achieve her goal? Found 2 solutions by stanbon, josmiceli:Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Alice invests $18,000 at age 30 from the signing bonus of her new job. She hopes the investments will be worth $36,000 when she turns 41. If the interest compounds continuously, approximately what rate (as a percent) of growth will she need to achieve her goal?
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A(t) = P*e^(rt)
36000 = 18000*e^(r*11)
e^(11r) = 2
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11r = ln2/lne
11r = 0.693
r = 0.063
Answer:: rate = 6.3%
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Cheers,
Stan H.
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