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.
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.
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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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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