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Suppose that $13,000 is invested in a bond fund and the account grows to $14,757.69 in 5 yr. Part: 0 / 2 Part 1 of 2 (a) Use the model A = Pe¹¹ to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate of return under continuous compounding is approximately Dart 11 %. x

Suppose that $13,000 is invested in a bond fund and the account grows to $14,757.69 in 5 yr. Part: 0 / 2 Part 1 of 2 (a) Use the model A = Pe¹¹ to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate of return under continuous compounding is approximately Dart 11 %. x

College Algebra
College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section6.1: Exponential Functions
Problem 68SE: An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000...
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Suppose that $13,000 is invested in a bond fund and the account grows to $14,757.69 in 5 yr. Part: 0 / 2 Part 1 of 2 (a) Use the model A = Pet to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate of return under continuous compounding is approximately Dart 1 12 %. X
Transcribed Image Text:Suppose that $13,000 is invested in a bond fund and the account grows to $14,757.69 in 5 yr. Part: 0 / 2 Part 1 of 2 (a) Use the model A = Pet to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate of return under continuous compounding is approximately Dart 1 12 %. X
Part: 1 / 2 Part 2 of 2 (b) How long will it take the investment to reach $21,000 if the rate of return continues? Round to the nearest tenth of a year. Round values in intermediate steps to three decimal places. It will take the investment approximately yr to reach $21,000 if the rate of return continues. x
Transcribed Image Text:Part: 1 / 2 Part 2 of 2 (b) How long will it take the investment to reach $21,000 if the rate of return continues? Round to the nearest tenth of a year. Round values in intermediate steps to three decimal places. It will take the investment approximately yr to reach $21,000 if the rate of return continues. x
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