Suppose $5000 is invested at interest rate k, compounded continuously, and grows to $6954.84 in 6 years. Find interest rate. Find exponential rate, find balance after 10 years, find the doubling time? help!!!! Dec 4 | Erica from Seattle, WA | 1 Answer | 0 Votes Mark favorite Subscribe Comment
Continuously compounded interest formula: A = Pe^{kt} In this case we know A = $6954.84, t = 6 years and P = $5000.00. To solve for k ln(A) = ln(P) + kt kt = ln(A) - ln(P) k = [ln(A) -ln(P)]/t = (0.33)/6 years k = 0.055 or 5.5% per year Dec 4 | William S. Comment