Question 1198050
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<pre>

The general formula for the 8% compounded continuously is  A(t) = {{{A(0)*e^(rt)}}},  t is the time in years.


The effective rate is the annual growth rate

    {{{r[effective]}}} = {{{e^0.08}}} = 1.083287009.


In the percentage form, the effective rate is 8.33% (approximately).   <U>ANSWER</U>
</pre>

Solved.


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To see many other similar &nbsp;(and different) &nbsp;solved problems on continuously compounded accounts, &nbsp;look into the lesson

&nbsp;&nbsp;&nbsp;&nbsp;- <A HREF=https://www.algebra.com/algebra/homework/logarithm/Problems-on-continuously-compound-accounts.lesson>Problems on continuously compound accounts</A> 

in this site.


After reading this lesson, &nbsp;you will tackle such problems on your own without asking for help from outside.