Question

please show answer before and after rounding

Finding the rate or time in a word problem on continuous... Suppose that $1600 is initially invested in an account at a fixed interest rate, compounded continuously. Suppose also that, after four years, the amount of money in the account is $1766. Find the interest rate per year. Write your answer as a percentage. Do not round any intermediate computations, and round your percentage to the nearest hundredth. % per year х 5 ?

Answer 1

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We know that, continuously compounded interest barmula.. A=pert where A = Amount (Future vake) pa principal (Initial value) rainterest Rate. t=time. & Here P - $1.600 So A = $ 1766 t=4 years 1766 =1600 ett e 4 _ 1766 = 1.10375 2) е 1 600 >> 4 r = ln (1.10375) =0.0987139729 Y = 0.0246783682. (before round) 0466 = 2.96783682 % (beifor round.) After rounding po.02 (nearest hundredth) ~ 2 % per year C Hope this helps you! Thank you