Find the missing values assuming continuously compounded interest. (Round your answers to two decimal places.) Initial investment: $1500
annual % rate: 7 1/2 %
Time to double: NA
Amount after 10 years: NA

9514 1404 393

Step-by-step explanation:

For continuously compounded interest, the doubling time is 69.3 years divided by the percentage interest rate:

  doubling time = 69.3 yr/7.5 = 9.24 yr

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The account balance is ...

  A = Pe^(rt) = 1500·e^(0.075·10) = 1500·e^0.75 ≈ 3175.50

The amount after 10 years is $3175.50.

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