What interest rate is needed for an investment of 450 to be worth 1440 after 27 years if interest is compounded continuously? Enter your answer in decimal form and round to the nearest thousandth.

Soluzione

Wha t in t eres t r a t e i s n ee d e d f or an in v es t m e n t o f 450​​​​ t o b e w or t h ​​1440​​ a f t er 27​​​ ye a rs i f in t eres t i s co m p o u n d e d co n t in u o u s l y ? E n t er yo u r an s w er in d ec ima l f or m an d ro u n d t o t h e n e a res t t h o u s an d t h .

Rate : 4.30796 \dots %

Fasi della soluzione

Translate the problem into an equation:

1440 = 450 e^{r \cdot 27}

Risolvi per

r, 1440 = 450 e^{r \cdot 27} : r = 4.30796 \dots %

Rate : 4.30796 \dots %