Ask questions and get helpful responses.

Pre-calculus

Complete the table assuming continuously compounded interest. (Round your answers to two decimal places.)

Initial Investment:
Annual % Rate:
Time to Double: 8 yr
Amount After 10 Years: $1700

I don't understand how to get in the initial investment of annual % rate given only the time to double and amount after 10 years.

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩
  1. to double in 8 years, you need interest rate r where

    (1+r)^8 = 2
    r = 0.0905 or 9.05%

    So, with initial amount P, you have

    P(1+.0905)^10 = 1700

    Now just solve for P.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
  2. STEVE YOU THE MAN! THANK YOU!

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
  3. Steve your calculations/formulas are wrong they do not work for continuous compounding sorry

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩

Respond to this Question

First Name

Your Response

Still need help? You can ask a new question.