If the interest is compounded continuously, what interest rate do you need for a 5000 investment to double in 10 years
1 answer:
Answer:
rate = natural log (Total / Principal) / Years
We need 5,000 to become 10,000 in 10 years so,
rate = natural log (Total / Principal) / Years
rate = natural log(10,000 / 5,000) / 10
rate = natural log(2) / 10
rate = 0.69314718056 / 10
rate = .069314718056 which equals
rate = 6.9314718056 per cent
Source: https://www.1728.org/rate2.htm
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Step-by-step explanation:
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