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 = --------------------------------------------
10
= .1439
The interest rate was 14.39%.
B because it is the answer
Answer:
A. $1,504.17
Step-by-step explanation:
Total cost of producing 621 shares
= 621 × 30.60
= 19002.6
Also, cost of selling 621 shares at $48 each is
= 621 × 36.23
= 22498.83
Also, the charges paid as brokerage during purchase and selling of shares
= [19002/1000 + 22498.83/1000] × 48
= [19.0026 + 22.49883] × 48
= 1992.06864
Therefore,
Net profit = 22498.83 - 19002.6 - 1992.06864
Net profit = $1,504.17
