Find the missing values assuming continuously compounded interest.

Question

Answer 1

A = Pe^rt

2 = e^.115t for doubling time

ln2 = .115t

t = ln2/.115 = about 6.027 years for 750 to become $1,300 at 11.5% interest

t = about 6 years doubling time

after 10 years, it's obviously more than $1,300, closer to twice as much= $2,600, as 10 is almost twice 6

A=750e^10(.115)

= $2,368.64