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2 years ago

Plz help asap 25 points

Mathematics

1 answer:

Ierofanga [76]2 years ago

8 0

Answer:

$14.39

Step-by-step explanation:

The formula for continuous compounding of interest is:

A = Pe^(rt), were P is the initial dollar amount, A is the final amount, r is the interest rate as a decimal fraction, and t is the time in years.

Here we have $2109 = $500e^(10r) and need to solve for r.

To do this, take the natural log of both sides, obtaining:

ln 2109 = ln 500+ 10r.

Then 10r = ln 2109 - ln 500, and

ln 2109 - ln 500

r = --------------------------------------------

= .1439

The interest rate was 14.39%.

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