Question

Suppose that $2500 is initially invested in an account at a fixed interest rate, compounded continuously. Suppose also that, after three years, the amount of money in the account is $2695. Find the interest rate per year.
Write your answer as a percentage. Do not round any intermediate computations, and round your percentage to the nearest hundredth.

Answer 1

is it 6.5%

Answer 2

or .65%?

Answer 3

$2,695 = 25OO e^(3r)
=> r = (1/3) ln ( 2,695/ 2500 ) = 2.5%

Answer 4

woah, i was way off then

Answer 5

Do you apply correct formula?

Answer 6

I did what one of my classmates said too... lol

Answer 7

First, you need to apply the compound continous one, second you should practice enter the formula into calculator properly!

Answer 8

okay, thank you.

Answer 9

Any question?

Answer 10

nope:)