For Exercises 61-70, use the model A = P e r t or A = P ( 1 + r n ) n t where A is the future value of P dollars invested at interest rate r compounded continuously or n times per year for t years. (See Example 11) 63. A $2500 bond grows to $3729.56 in 10 yr under continuous compounding. Find the interest rate. Round to the nearest whole percent.
For Exercises 61-70, use the model A = P e r t or A = P ( 1 + r n ) n t where A is the future value of P dollars invested at interest rate r compounded continuously or n times per year for t years. (See Example 11) 63. A $2500 bond grows to $3729.56 in 10 yr under continuous compounding. Find the interest rate. Round to the nearest whole percent.
Solution Summary: The author explains that the rate of interest to the nearest percentage is lA=Pert.
For Exercises 61-70, use the model
A
=
P
e
r
t
or
A
=
P
(
1
+
r
n
)
n
t
where A is the future value of P dollars invested at interest rate r compounded continuously or n times per year for t years. (See Example 11)
63. A $2500 bond grows to $3729.56 in 10 yr under continuous compounding. Find the interest rate. Round to the nearest whole percent.
This is an example only. What can be a simialr equation with differnet numbers using logs and can have a mistake in one of the steps and what will be the correct way to solve it. Thanks
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