Question

An initial investment of $350 is worth $429.20 after six years of continuous compounding. Find the

Answer 1

Answer:

Interest Rate : 0.0346 or 3.46%

Step-by-step explanation:

• 429.2=350*(1+x)^6

• 429.2/350= (1+x)^6

•(429.2/350)^(1/6)= 1+x

•(429.2/350)^(1/6)-1= x

Check work:

350*(1+0.0346)^6=429.2