Suppose that $50,000 from a retirement account is invested in a large cap stock fund. After 15 yr, the value is $167,325.68. Part: 0/2 Part 1 of 2 (a) Use the model A=Pe 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 is approximately %. X S 8E
Suppose that $50,000 from a retirement account is invested in a large cap stock fund. After 15 yr, the value is $167,325.68. Part: 0/2 Part 1 of 2 (a) Use the model A=Pe 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 is approximately %. X S 8E
Chapter10: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 442RE: Jerome invests $18,000 at age 17. He hopes the investments will be worth $30,000 when he turns 26....
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Question
![Suppose that $50,000 from a retirement account is invested in a large cap stock fund. After 15 yr, the value is $167,325.68.
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 is approximately
%.
X
Ś
OO
>](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38d76385-f4d2-490f-ad08-e2aeafc269de%2F112378f6-0097-4107-a6a9-ea75d24568d0%2Flbz34f8_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that $50,000 from a retirement account is invested in a large cap stock fund. After 15 yr, the value is $167,325.68.
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 is approximately
%.
X
Ś
OO
>
![(b) How long will it take the investment to reach one-quarter million dollars? Round to the nearest tenth of a year. Round values in intermediate steps
to three decimal places.
It will take approximately
years.
X
EQ
BH](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F38d76385-f4d2-490f-ad08-e2aeafc269de%2F112378f6-0097-4107-a6a9-ea75d24568d0%2F35w6hxp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:(b) How long will it take the investment to reach one-quarter million dollars? Round to the nearest tenth of a year. Round values in intermediate steps
to three decimal places.
It will take approximately
years.
X
EQ
BH
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