SOLUTION: Find the effective annual interest rate of an account containing $3000 which is compounded continuously at 8%
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Question 467434: Find the effective annual interest rate of an account containing $3000 which is compounded continuously at 8%
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Find the effective annual interest rate of an account containing $3000 which is compounded continuously at 8%
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Formula: A(t) = P(e^(rt))
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e^(rt) = e^0.08 = 1.0833
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Effective annual interest rate: 8.33%
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Cheers,
Stan H.
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