A financial math problem
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A financial math problem

[From: ] [author: ] [Date: 11-05-03] [Hit: ]
800(1+.0905)^10=1906.......
Complete the table for a savings account in which interest is compounded continuously.

Initial investment: $800.00
Annual percent rate:_____?
Time to double: 8 years
Amount after 10 years: _____?

Please show me how you found the annual percent rate and the amount after 10 years?

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1600=800(1+r)^8

log2=log(1+r)^8

2=(1+r)^8

2^(1/8)=1+r

2^(1/8)-1=r

1.09051-1=r

.090508=r

9.05%=r

800(1+.0905)^10=1906.6
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