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!!!!

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!!!!

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Aliquippa, PA

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

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