Question

Suppose $6,600 is invested at interest rate k, compounded continuously, and grows to $10,600 in 6 years. a) Find the interest rate. b) Find the exponential growth function. c) Find the balance after 10 years.

Answer 1

Given invested amount (0)= $6600 interest rate (n=k Time it - byear. Total amount (A)= 10600 we Know that compound interest formule when compounded contine inuously. A=pert where, A is total amount offer & year. P is principle amount r is interest rate. f is time. So. K.6 1060o = 6600 e A= togoo P = 6600 10600 Sk e - k &- 6 6600 6k e 1.6060 = taking both side. In. then. encerk) In (2.6060) = O. 4737843= 6K K: 0.07896405 K= 7.89.1 interest rate (o

G exponential growth lunchon: A= Pert where A 2 dodal amount D: Principle amount ra interest rate. time. ta so. 0.04895 As . 6600 e after 10 years. 0.07896 X 10 6600 e A = AS 0.7296405 6600 e A- 6600 (2-2026044-47... A 14537-18935 Answer
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