finance math + logarithm problem

Mathematics
Tutor: None Selected Time limit: 1 Day

Use logarithms to solve the problem. Find the interest rate needed for an investment of $5900 to double in 4 yr if interest is compounded continuously.

Dec 9th, 2014

A = P(1 + r/n)^nt

11800 = (5900)(1 + r/1)^(1)(4)

11800 = (5900)(1 +r)^4

Divide both sides by 5900

2 = (1 + r)^4

4th root of 2 = 1 + r

r = 4th root of 2  +1

r = 2.189 = .02189%

Hope this helps!

Dec 9th, 2014

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Dec 9th, 2014
...
Dec 9th, 2014
Dec 9th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer