<PRE><B>Question 1199252</B>
it looks like they used the continuous compounding formula of f = p * e ^ (rt)
f is the future value = 2000
p is the present value = 500
r is the interest rate per hour
t is the number of hours = 5
formula becomes:
formula becomes 2000 = 500 * e ^ (r * 5)
divide both sides of the equation by 4 to get:
2000 / 500 =  ^ (r * 5)
simplify to get:
4 = e ^ (5r)
take the natural log of both sides of the equation to get:
ln(4) = ln(e ^ (5r))
this becomes ln(4) = 5r * ln(e) which becomes ln(e ^ 5r)) = 5r * ln(e)
this then becomes ln(4) = 5r because ln(e) = 1
divide both sides of the equation by 5 to get ln(4) / 5 = r
solve for r to get r = .277 rounded to 3 decimal places.
looks like selection D is your answer.
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