SOLUTION: A family paid $25,000 cash for a house twenty-five years ago. Today, they sold the house for $160,000. If interest is compounded continuously, what annual nominal rate of interest

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Question 383498: A family paid $25,000 cash for a house twenty-five years ago. Today, they sold the house for $160,000.
If interest is compounded continuously, what annual nominal rate of interest did the original $25,000 investment
earn?
Answer by mananth(16946) About Me  (Show Source):
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A family paid $25,000 cash for a house twenty-five years ago. Today, they sold the house for $160,000.
If interest is compounded continuously, what annual nominal rate of interest did the original $25,000 investment
earn?
...
i = q([A/P]1/nq - 1).
q=daily = 365
P=25000
A=160,000
n=25
..
i=365*((160000/25000)^(1/25*365) -1))
i=0.0742
rate= 7.42%