SOLUTION: Find the effective yield, to the nearest hundreth percent, of an investment at 6% coumpounded continuesly?

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Question 171162: Find the effective yield, to the nearest hundreth percent, of an investment at 6% coumpounded continuesly?
Answer by stanbon(48535) About Me  (Show Source):
You can put this solution on YOUR website!
Find the effective yield, to the nearest hundreth percent, of an investment at 6% coumpounded continuesly?
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A(t) = Aoe^(0.06t)
A(t) = Ao*(e^0.06)^t
A(t) = Ao*1.061837^t
A(t) = Ao(1 + 0.06183)^t
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The effective interest rate is 6.183%
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Cheers,
Stan H.