1. Find the interest rate needed for an investment of $3000 to double in 5 yr if interest is compounded continuously. (Round your answer to two decimal places.)
2. How long will it take an investment of $7,000 to double if the investment earns interest at the rate of 8% compounded continuously? (Round your answer to two decimal places.)
2. How long will it take an investment of $7,000 to double if the investment earns interest at the rate of 8% compounded continuously? (Round your answer to two decimal places.)
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5i = ln(2)
i = ln(2) / 5 = 13.86%
Answer (1): 13.86%
ln(2) = 0.08 t
t = ln(2) / 0.08 = 8.66 years
Answer (2): 8.66 years
i = ln(2) / 5 = 13.86%
Answer (1): 13.86%
ln(2) = 0.08 t
t = ln(2) / 0.08 = 8.66 years
Answer (2): 8.66 years