Suppose that a sum Po is invested at an annual rate of return r compounded continu- ously. (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.
Suppose that a sum Po is invested at an annual rate of return r compounded continu- ously. (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.
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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Transcribed Image Text:Suppose that a sum Po is invested at an annual rate of return r compounded continu-
ously.
(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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