A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • 5 years ago

Find the interest rate needed for an investment of $4300 to double in 3 yr if interest is compounded continuously. (Round your answer to two decimal places.)

  • This Question is Closed
  1. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Start by using the continuous compounding formula: \[A=Pe ^{rt}\]

  2. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Where A is your final amount, P is your original investment, e is Euler's constant (the e^ button on a calculator), t is time, and r is the rate written as a decimal.

  3. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Your equation would look like \[8600=4300e ^{3r}\]

  4. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    To solve, get the exponential part by itself by dividing both sides by 4300. Then, get the 3r out of the exponent by taking the natural logarithm of both sides (the ln button on your calculator). This will cancel out the e on the right side and leave 3r. Finally, divide both sides of the equation by 3.

  5. anonymous
    • 5 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    thank you

  6. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.