SOLUTION: I am having difficulty with this problem:
A gift of $6000 grew into $6,000,000 in 200 years. What is the interest rate if it is compounded annually?
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A gift of $6000 grew into $6,000,000 in 200 years. What is the interest rate if it is compounded annually?
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Question 736539: I am having difficulty with this problem:
A gift of $6000 grew into $6,000,000 in 200 years. What is the interest rate if it is compounded annually? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! A gift of $6000 grew into $6,000,000 in 200 years. What is the interest rate if it is compounded annually?
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A(t) = P(1+(r/n))^(nt)
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6 million = 6 thousand * (1+r)^(200)
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1000 = (1+r)^200
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200*log(1+r) = log(1000)
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log(1+r) = 3/200
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1+r = 10^(3/200)
1+r = 1.035..
rate = 0.035 = 3.5%
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Cheers,
Stan H.
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