5.Suppose that a sum S0 is invested at an annual rate of return r compounded continuously. a.Find the time T required for the original sum to double in value as a function of r. b.Determine T if r = 7%. c.Find the return rate that must be achieved if the initial investment is to double in 8 years.
5.Suppose that a sum S0 is invested at an annual rate of return r compounded continuously. a.Find the time T required for the original sum to double in value as a function of r. b.Determine T if r = 7%. c.Find the return rate that must be achieved if the initial investment is to double in 8 years.
Algebra and Trigonometry (MindTap Course List)
4th Edition
ISBN:9781305071742
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter4: Exponential And Logarithmic Functions
Section4.2: The Natural Exponential Function
Problem 2E
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5.Suppose that a sum S0 is invested at an annual rate of return r compounded continuously. a.Find the time T required for the original sum to double in value as a function of r. b.Determine T if r = 7%. c.Find the return rate that must be achieved if the initial investment is to double in 8 years.
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