SOLUTION: Please help me solve this: An investment of $5000 is compounded continuously for 20 years. What interest rate would yield $16,600?
so far I've got 16,600={{{5000e^20}}}
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so far I've got 16,600={{{5000e^20}}}
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Question 930217: Please help me solve this: An investment of $5000 is compounded continuously for 20 years. What interest rate would yield $16,600?
so far I've got 16,600= Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Please help me solve this: An investment of $5000 is compounded continuously for 20 years. What interest rate would yield $16,600?
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A(t) = Pe^(rt)
16,600 = 5000e^(20r)
e^(20r) = 3.32
Take the natural log of both sides to get:
20r = ln(3.32)
r = 1.20/20
r = 0.06 = 6%
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Cheers,
Stan H.
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