Compound Interest In Exercises 39-44, complete the table for a savings account in which interest is compounded continuously.
Initial Investment Annual Rate Time to Double Amount After 10 Years
To calculate: Annual rate of interest on the savings account and the amount in the account after 10 years.
The initial investment is , and the time to double the investment is 15 years.
The interest is compounded annually.
We can use Growth and decay model .
Let us consider the expression:
We have the annual rate, .
As initial investment, the time required for doubling the investment is .
For doubling the initial investment, .
By putting the values, and in equation (1), we get:
By simplifying further,
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