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Compound Interest (Continuously) - Problem 6

Teacher/Instructor Alissa Fong
Alissa Fong

MA, Stanford University
Teaching in the San Francisco Bay Area

Alissa is currently a teacher in the San Francisco Bay Area and Brightstorm users love her clear, concise explanations of tough concepts

This problem looks at what interest rate you need to get a certain amount of money after a certain amount of years in an account with continuously compounding interest. The word "continuous" tells you that you're using "e" as your base, so in order to solve for the rate in the exponent, you'll be using the natural log. Remember to write your rate as a percent rather than as a decimal. If you get stuck, try writing the equation in log form instead of exponential form.

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