Suppose that $2500 is invested at interest rate k, compounded continuously, and grows to $4000.00 after 5 years. a. What is the interest rate?b. Find the exponential growth function. c. What will the balance be after 10 years? d. After how long will the $2500 have doubled?

Question

kropot72 · Answer

$$A=Pe ^{rt}$$
where A is the amount after t years, P is the principal, r is the annual interest rate as a decimal and t is the investment period.
a. Substitute the given values in the equation and solve for r.