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Question 1: If a principle of $4000 is invested at an interest rate of 6%, how many years will it be until the investment has grown to $5000 if the interest is compounded continuously? Use the formula A = Pet. Round to the nearest 0.01 years. Question 2: At what rate should $10000 be invested so that after 11 years, the investment will have grown to $68000? Round your answer to the nearest 0.01 percent. For example, 5¹% interest should be expressed as 5.25. Do not include the percent symbol in your answer. M

Question 1: If a principle of $4000 is invested at an interest rate of 6%, how many years will it be until the investment has grown to $5000 if the interest is compounded continuously? Use the formula A = Pet. Round to the nearest 0.01 years. Question 2: At what rate should $10000 be invested so that after 11 years, the investment will have grown to $68000? Round your answer to the nearest 0.01 percent. For example, 5¹% interest should be expressed as 5.25. Do not include the percent symbol in your answer. M

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 1: If a principle of $4000 is invested at an interest rate of 6%, how many years will it be until the investment has grown to $5000 if the interest is compounded continuously? Use the formula A = Pet. Round to the nearest 0.01 years. Question 2: At what rate should $10000 be invested so that after 11 years, the investment will have grown to $68000? Round your answer to the nearest 0.01 percent. For example, 5-% interest should be expressed as 5.25. Do not include the percent symbol in your answer. B
Transcribed Image Text:Question 1: If a principle of $4000 is invested at an interest rate of 6%, how many years will it be until the investment has grown to $5000 if the interest is compounded continuously? Use the formula A = Pet. Round to the nearest 0.01 years. Question 2: At what rate should $10000 be invested so that after 11 years, the investment will have grown to $68000? Round your answer to the nearest 0.01 percent. For example, 5-% interest should be expressed as 5.25. Do not include the percent symbol in your answer. B
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