Question

What interest rate, compounded annually, is equivalent to a 3% rate compounded continuously? Round to two decimal places.

Answer 1

I know that annually is the equation P=Poa^t and continuously the equation is P=Poe^kt.

Can I make Poa^t=Poe^kt?
Even then, I feel like I have nothing to go by in terms of solving it.

Answer 2

A/P=(1+r) = e^0.03 using t = 1 for both
e^0.03 = 1.0304

Answer 3

That's what I put on my test, and I got it wrong.

I have a similar problem I found:
"What interest rate, compounded annually, is equivalent to a 7% rate compounded continuously? Round to two decimal places."

The answer to that one in the answer key was 7.25%