Question

Fred decides to think about retirement and invests at the age of 26. He invests $15,000 and hopes the investment will be

Answer 1

Answer:

Step-by-step explanation:

Future value with continuous compounding ; FV =$Pe^{rt\\ } \\ 900,000 = 15,000e^{38r} \\ \\ \frac{900,000}{15,000} =e^{38r\\ }\\ \\ \\ 60 =e^{38r}$

Introduce ln on both sides of the equation

ln 60 = ln$e^{38r}$

note:  ln$e^{x} = x$

Next, solve the equation;

4.09 = 38r

Divide both sides by 38 to solve for r;

4.09/38 = r

r= 0.107746 or 10.7746%

Therefore the rate would be 10.775% to the nearest a tenth of a percent.

Answer 2

Answer:

10.8%

Step-by-step explanation: