document.write( "Question 1139828: An initial deposit is made in a bank account. Find the interest rate, r , if the interest is compounded continuously and no withdrawals or further deposits are made. Round to the nearest hundredth of a percent.
\n" ); document.write( "Initial Amount: $3,500
\n" ); document.write( "Amount in 5 years: $5,100 \n" ); document.write( "

Algebra.Com's Answer #760396 by MathTherapy(10552) $\"\"$ $\"About$

You can put this solution on YOUR website!
An initial deposit is made in a bank account. Find the interest rate, r , if the interest is compounded continuously and no withdrawals or further deposits are made. Round to the nearest hundredth of a percent.
\n" ); document.write( "Initial Amount: $3,500
\n" ); document.write( "Amount in 5 years: $5,100
\n" ); document.write( "

Formula for interest rate (r), with future value (FV), present value (PV), and time (t), in years, KNOWN: 
\n" );
document.write( "\r
\n" );
document.write( "\n" );
document.write( "OR\r
\n" );
document.write( "\n" );
document.write( "Using the future value formula for continuous compounding, or, , we get: 
\n" );
document.write( " ------- Substituting 5,100 for A, 3,500 for P, and 5 for r
\n" );
document.write( "
\n" );
document.write( "
\n" );
document.write( " -------- Converting to EXPONENTIAL form
\n" );
document.write( " \n" );
document.write( "

\n" );