SOLUTION: 1. What annual interest rate, to the nearest tenth, will produce $5760 if $3500 is left at interest compounded annually for 10yr? 2. Suppose the inflation rate is 4%. Use the fo

Question 1039898: 1. What annual interest rate, to the nearest tenth, will produce $5760 if $3500 is left at interest compounded annually for 10yr?
2. Suppose the inflation rate is 4%. Use the formula for continuous compounding to find the number of years, to the nearest tenth, for $1 item to cost $2.
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
Let = interest rate

Take the 10th root of both sides

The rate is 5.1 %
--------------------------

Take the log of both sides

In 17.7 yrs, the item will cost $2
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