SOLUTION: An investment with interest compounded continuously doubled itself in 16yr. What is the interest rate? How do you work this problem

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Question 328011: An investment with interest compounded continuously doubled itself in 16yr. What is the interest rate? How do you work this problem
Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


The formula for continuous compounding is:



If the investment doubles, then



That means that, for ,



Take the natural log of both sides:



Use:



To write:



Use:



To write:





My calculator said it, I believe it, that settles it.

John