SOLUTION: Lucy is going to invest $10,000 and leave it in an account for 13 years. Assuming the interest is compounded continuously, what interest rate, to the nearest tenth of a percent, wo

Algebra ->  Test -> SOLUTION: Lucy is going to invest $10,000 and leave it in an account for 13 years. Assuming the interest is compounded continuously, what interest rate, to the nearest tenth of a percent, wo      Log On


   

Question 1154396: Lucy is going to invest $10,000 and leave it in an account for 13 years. Assuming the interest is compounded continuously, what interest rate, to the nearest tenth of a percent, would be required in order for Lucy to end up with $13,000?
Answer by ikleyn(52790) About Me  (Show Source):
You can put this solution on YOUR website!
.

13000 = 10000%2Ae%5E%2813%2At%29


13000%2F10000 = e%5E%2813%2At%29


1.3 = e%5E%2813%2At%29


Take the natural logarithm from both sides


ln(1.3) = 13t


t = ln%281.3%29%2F13 = 0.020182 = 2.018%.      ANSWER