Avery is going to invest $270 and leave it in an account for 20 years. Assuming the interest is compounded continuously, what interest rate, to the nearest hundredth of a percent, would be required in order for Avery to end up with $600?

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Avery is going to invest $270 and leave
it in an account for 20 years. Assuming
the interest is compounded
continuously, what interest rate, to the
nearest hundredth of a percent, would
be required in order for Avery to end
up with $600?
Transcribed Image Text:Avery is going to invest $270 and leave it in an account for 20 years. Assuming the interest is compounded continuously, what interest rate, to the nearest hundredth of a percent, would be required in order for Avery to end up with $600?
Expert Solution
Step 1

For compounded continuously 

A=Pertr = ln(AP)t

 

Here, 

A=$600P=$270t=20 

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