Question

3. Suppose you invest $5,000 in a continuously compounded interest account. After four years,

your account balance was $6,230. What interest rate were you earning on this account?
Convert your answer to percent and round your answer to the nearest tenth(one decimal
place).

Answer 1

Explanation:

FV = PV e^(rt)

6230 = 5000 e^(4 r) <====solve for 'r' = 5.5 %