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Question 142615: Pls help me.
The annual growth rate for an investment that is growing continuously is given by
r = 1/tIn(A/P)
where P is the principle and A is the amount after t years.
An investment of $9000 with a certain computer company in 1995 grew to $250000 in 1998. Assuming the investment grew continuously, what was the annual growth rate?
(Please round your answer to three decimal places.)
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The annual growth rate for an investment that is growing continuously is given by r = 1/tIn(A/P) where P is the principle and A is the amount after t years.
An investment of $9000 with a certain computer company in 1995 grew to $250000 in 1998. Assuming the investment grew continuously, what was the annual growth rate?
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r = 1/[3*ln(250000/9000)]
r = 1/[3*ln(27.78)]
r = 1/9.9729..
r = 0.1027...
r = 10.27%
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Cheers,
Stan H.
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