Math10 said:Homework Statement
At what rate of interest, compounded continuously, will a bank deposit double in value in 8 years?
Homework Equations
None.
The Attempt at a Solution
Q0e8r=2Q0
e8r=2
8r=ln(2)
r=ln(2)/8
But the answer is (25/2)ln(2)%. How do I get the answer from there?
The current interest rate varies depending on the type of loan or investment. For example, the current interest rate for a mortgage may be different from the interest rate for a savings account. It is important to research and compare interest rates from different lenders or institutions before making a financial decision.
The interest rate is determined by several factors, including the current market conditions, inflation, and the lender's or institution's policies. The Federal Reserve also plays a role in setting interest rates, as they adjust the federal funds rate which impacts other interest rates.
A fixed interest rate remains the same throughout the loan or investment period, while a variable interest rate can fluctuate based on market conditions. Fixed rates offer stability and predictability, while variable rates can provide potential for higher returns but also carry more risk.
The interest rate directly affects the amount of interest you will pay on a loan or earn on an investment. A higher interest rate means you will pay more in interest on a loan, while a higher interest rate on an investment will result in higher returns. It is important to consider the interest rate when budgeting and planning for financial goals.
Yes, the interest rate can change over time. For example, if you have a variable interest rate, it can fluctuate based on market conditions. With a fixed interest rate, it will remain the same throughout the loan or investment period, but you may be able to refinance or renegotiate the terms to change the interest rate. It is important to stay informed about changes in interest rates and how they may impact your finances.