Question

Use logarithms to solve the problem. Find the interest rate needed for an investment of $5800 to double in 5 years if interest is compounded continuously. (Round your answer to two decimal places.)

Answer 1

14.86%

Explanation:

The principal = $5800

Time = 5 years

Amount = $ 11600

From;

A= P(1 + r)^n

Substituting values;

11600=5800(1 + r)^5

Rate= (11600/5800)^1/5 - 1

Rate= 0.1486

Therefore

Rate= 14.86%