Consider the figure shown below where ab is a line segment and m is the midpoint of the line segment ab
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We need to find the interest rate in order to solve this problem:
.12/12 = (.01)
The number of years is unknown. T represents time in the following formula:
1000 (initial investment)
2000 (balance after t years from investment)
=$2000
In order to isolate the exponential term, both sides must be divided by 1000.
=2
By using natural logarithm:
By dividing both sides of the equation by