2 years ago

Pls help me answer this :(

Mathematics

1 answer:

Snezhnost [94]2 years ago

8 0

Eek let me get my bother

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A family wants to save for college tuition for their daughter. What continuous yearly interest rate r% is needed in their saving

sergey [27]

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The continuous yearly interest is 22.5% per year.

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Continuous yearly interest:

Continuous yearly interest is defined as the sum of the interest comes from principle and the interest comes from interest.

The formula for continuous interest yearly is

$A=Pe^{rt}$

where A = The final amount =$110,000

P= principle =$4,700

r= rate of interest

t= time (in year)= 14 years

$\therefore 110,000= 4,700e^{r\times 14}$

$\Rightarrow e^{14r}= \frac{110,000}{4,700}$

Taking ln both sides

$\Rightarrow ln e^{14r}= ln(\frac{110,000}{4,700})$

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