Sally needs $20,000 in 4 years. She has $10,000 to invest. If interest is compounded continuously, what rate is required for Sally to meet her goal?

Question

asked Jul 2, 2019 184k views

1 Answer

Samaitra · Answer 1 · 2019-07-08T12:30:49+0000

Answer: rate = natural log (Total / Principal) / Years

rate = natural log (2) / 4

rate = 0.69314718056 / 4

rate = 0.1732867951 So the required rate is

17.32867951 %