document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=383498>Question 383498</A>: <I><SPAN STYLE=\"word-break: break-all;\"> A family paid $25,000 cash for a house twenty-five years ago. Today, they sold the house for $160,000.<BR>\n" );
document.write( "If interest is compounded continuously, what annual nominal rate of interest did the original $25,000 investment<BR>\n" );
document.write( "earn? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #271532 by </B><A HREF=/tutors/aboutme.mpl?userid=mananth><B>mananth(16946)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=mananth><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=mananth><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=271532\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> A family paid $25,000 cash for a house twenty-five years ago. Today, they sold the house for $160,000.<BR>\n" );
document.write( "If interest is compounded continuously, what annual nominal rate of interest did the original $25,000 investment<BR>\n" );
document.write( "earn?<BR>\n" );
document.write( "...<BR>\n" );
document.write( "i = q([A/P]1/nq - 1).<BR>\n" );
document.write( "q=daily = 365<BR>\n" );
document.write( "P=25000<BR>\n" );
document.write( "A=160,000<BR>\n" );
document.write( "n=25<BR>\n" );
document.write( "..<BR>\n" );
document.write( "i=365*((160000/25000)^(1/25*365) -1))\r<BR>\n" );
document.write( "\n" );
document.write( "i=0.0742<BR>\n" );
document.write( "rate= 7.42% </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );