3 years ago

Factor the following expression.

Mathematics

1 answer:

Strike441 [17]3 years ago

3 0

Whats the expression

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Read 2 more answers

c) If an initial investment of $ 35,000 grows to $257,000 in 15 years, what annual interest rate, continuously compounded, was e

castortr0y [4]

Answer: 13.29%

Step-by-step explanation:

The formula to calculate the compound amount (compounded continuously) is given by :-

$A=Pe^{rt}$ , 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

$257000=(35000)e^{15r}\\\\\Rightarrow\ e^{15r}=\dfrac{257000}{35000}\\\\\Rightarrow\ e^{15r}=7.3428$

Taking natural log on both the sides , we get

$15r=\ln(7.3428)\\\\\Rightarrow\ 15r=1.9937\\\\\Rightarrow\ r=\dfrac{1.9937}{15}0.132913333333\approx0.1329=13.29\%$

Hence, the annual interest rate = 13.29%

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3 years ago