Question

suppose that $2300 in initially invested in an account at a fixed interest rate, compounded continuously. After 3 years, the amount of money in the account is $2672. Find the interest rate per year. The answer should be written as a percentage.
please and thank you!!

Answer 1

\[M = P e ^{r.t}\]

Answer 2

\[2672 = 2300 e ^{r . 3}\]

Answer 3

oh okay, then what do i do??

Answer 4

divide both sides by 2300

Answer 5

okay then?

Answer 6

\[2672/2300 = e ^{3r}\]

Answer 7

take natural log both sides

Answer 8

\[\ln (2672/2300) =3r\]

Answer 9

r = 5 %

Answer 10

thats per year??

Answer 11

correct..
r = 3 years right... so its 5 % per year

Answer 12

oh okay thank you so muchhh!

Answer 13

spend some time on "e" in your free time.. its an amazing number