This problem looks at what interest rate you need in order to get a certain amount of money to double in a certain amount of time in a continuously compounded account. The word "continuous" tells you that you're using "e" as your base, so in order to solve for the rate that is in the exponent, you'll be using the natural log. This example can be applied to any amount of initial investment- all we need to know is that the money is to double. If you get stuck, try writing the equation in log form instead of exponential form.
Experience the 'A-Ha!' moment with the best teachers
whom we hand-picked for you!
M.A. in Secondary Mathematics, Stanford University B.S., Stanford University
Alissa has a quirky sense of humor and a relatable personality that make it easy for students to pay attention and understand the material. She has all the math tips and tricks students are looking for.
“Your tutorials are good and you have a personality as well. I hope you have more advanced college level stuff, because I like the way you teach.”
“Thanks alot for such great lectures... I never found learning this easier ever before... keep up the great work.... :)”
“You seem so kind, it's awesome. Easier to learn from people who seem to be rooting for ya!' thanks”