Question 934218
You want to make an investment in a continuously compounding account over a period of 100 years. What interest rate is required for your investment to double in that time period? Round the logarithm value and the answer to the nearest hundredth.
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formula for continous compounding: A=pe^rt, p=initial investment, r=interest rate, t=years, A=amount after t-years
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A/p=2=e^rt
rtlne=ln2
lne=1
rt=ln2
r=ln2/t
r=ln2/100=0.69
What interest rate is required for your investment to double in 100 yrs? 0.69%