document.write( "Question 1154740: A promissory note will pay $48,000.00 at maturity 9 years from now. If you pay $27,000.00 for the note now, what rate compounded continuously would you earn? \n" ); document.write( "

Algebra.Com's Answer #777218 by ikleyn(52925) $\"\"$ $\"About$

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document.write( "48000 = \r\n" );
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document.write( " = \r\n" );
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document.write( "1.777778 = \r\n" );
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document.write( "Take log base 10 of both sides\r\n" );
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document.write( "log(1.77778) = \r\n" );
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document.write( "log(1+r) =  = 0.027764\r\n" );
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document.write( "1 + r =  = 1.066\r\n" );
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document.write( "r = 1.066 - 1 = 0.066 = 6.6%.      ANSWER\r\n" );
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