Question

Really not sure what is meant by this when I'm only given one number, would appreciate help very much!!!!

Answer 1

Using continuous compounding, it is found that the value of r is of r = 7.7%.

What is continuous compounding?

The amount of money after t years in continuous compounding is:

$P(t) = P(0)e^{rt}$

In which:

• P(0) is the initial amount.

• r is the exponential growth rate.

The doubling time of 9 years means that P(9) = 2P(0), which is used to find r, hence:

$P(t) = P(0)e^{rt}$

$2P(0) = P(0)e^{9r}$

$e^{9r} = 2$

$\ln{e^{9r}} = \ln{2}$

$9r = \ln{2}$

$r = \frac{\ln{2}}{9}$

r = 0.077.

r = 7.7%.

More can be learned about continuous compounding at https://brainly.com/question/24722580

#SPJ1