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Exer. 910: An investment of P dollars increased to A
Chapter 5, Problem 9(choose chapter or problem)
QUESTION:
Exer. 910: An investment of P dollars increased to A dollars in t years. If interest was compounded continuously, find the interest rate. (Hint: Use trial and error.)
Questions & Answers
QUESTION:
Exer. 910: An investment of P dollars increased to A dollars in t years. If interest was compounded continuously, find the interest rate. (Hint: Use trial and error.)
ANSWER:Step 1 of 2
The balance of principal amount P with annual rate of compound interest r after t years is expressed by
(i)
Here, r is in the decimal form.
Now, given
To find the value of r.