Question

Allison is going to invest $7,800 and leave it in an account for 12 years. Assuming the

interest is compounded continuously, what interest rate, to the nearest hundredth of
a percent, would be required in order for Allison to end up with $11,800?

Answer 1

r=0,035

Explanation:

Equation is A=
`Pe^(r*t)`

P= 7800

t= 12

A= 11800

To find r

`Ln(A)/(P) = r*t`

`((Ln(11800)/(7800) ))/(12) = r`

r=0,035