Question 285204: Solve. Where appropriate, include approximations to four decimal places.
An investment with interest compounded continuously doubled itself in 16 yr. What is the interest rate?
Can someone please help me?
Found 2 solutions by rfer, MathTherapy:
Answer by rfer(16322)   (Show Source):
Answer by MathTherapy(10555)  (Show Source):
You can put this solution on YOUR website! This is future value, and the formula for future value, with continuous compounding is:  , where A = future value, P = present value, e = continuous compounding factor, or 2.7182818, r = annual interest rate, and t = time, in years = 16.
Let P = P. Then A = 2P, since the initial investment doubled.
would then give us:
 ---------- Dividing by LCD P
We can rewrite this as 
Applying logs, we get: = 
 , or 4.3322%
Therefore, the rate at which an investment doubles in 16 years, with continuous compounding interest is:  %.
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