Algebra and Trigonometry 10th Edition

Published by Cengage Learning
ISBN 10: 9781337271172
ISBN 13: 978-1-33727-117-2

Chapter 5 - 5.4 - Exponential and Logarithmic Equations - 5.4 - Page 397: 95a

Answer

The value of the investment becomes $2A$ or doubled also.

Work Step by Step

The formula for the amount $A$ with interest rate compounded continuously is: $$A=Pe^{rt}$$ Doubling the amount, the new value $A_1$ of the amount is: $$A_1=(2P)e^{rt}$$ $$A_1=2(Pe^{rt})$$ Substitute $Pe^{rt}=A$: $$A_1=2A$$ Thus, the value of the investment becomes $2A$ or doubled also.
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