Answer: 13.29%
Step-by-step explanation:
The formula to calculate the compound amount (compounded continuously) is given by :-
, where P is the principal amount , r is the rate of interest ( in decimal) and t is the time period.
Given : P= $ 35,000 , A= $257,000 and t=15 years
To find : r , we substitute all the values in the above formula , we get
Taking natural log on both the sides , we get
Hence, the annual interest rate = 13.29%
The division property of equality should Remus used to solve the given equation and this can be determined by using the given data.
Given :
Equation is .
The following steps can be used in order to determine the property that Remus use to solve the given equation:
Step 1 - Write the given equation.
Step 2 - The arithmetic operations can be used in order to evaluate the given equation.
Step 3 - Using the division property of equality the value of 'q' can be determined.
Therefore, the correct option is A).
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