SOLUTION: kimberly invested $6000 in her savings account for 8 years. when she with drw it, she had $797.62. Interest was compounded continuously. what was the interest rate on the account?

Question 1086721: kimberly invested $6000 in her savings account for 8 years. when she with drw it, she had $797.62. Interest was compounded continuously. what was the interest rate on the account?
Answer by jorel1380(3719) (Show Source): You can put this solution on YOUR website!
The formula for continuous interest is A=Pe^rt, where A is the total amount, P is the principal, or, initial amount, r is the nominal interest rate, and t is the time invested, in years. Therefore:
6797.62=6000*e^8r
Then:
1.1329367=e^8r
ln 1.1329367=ln e^8r
ln 1.1329367=8r ln e=8r
ln 1.1329367 /8=0.0156016=r
r=1.56016%
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