Exer. 910: An investment of P dollars increased to A

Chapter 5, Problem 9

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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.)

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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.

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