Question 1118990
The formula for continuously compounded interest is:
A = P*e^(rt), where A = amount, P = principal, r = the interest rate, t = time
Given: Time to double is 11 years; amount after 10 years = 1800
Thus 2P = P*e^(r*11)
Solving for r gives r = ln(2)/11
Now we can find P:
1800 = P*e^(ln(2)/11*10) -> P = 1800/e^(ln(2)/11*10) = $958.54