Question 408870: If you desire your investment to double in five years, what rate of interest compounded continuously should i seek? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! If you desire your investment to double in five years, what rate of interest compounded continuously should i seek?
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Solve (1+x)^5 = 2 where x is the annual rate
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1+x = 2^(1/5)
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1+x = 1.1487..
x = 0.1487...
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The rate of interest must be at least 14.87%
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Cheers,
Stan H.
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