Question

Alexandra is going to invest $12,000 and leave it in an account for 10 years. Assuming the interest is compounded continuously, what interest rate, to the nearest hundredth of a percent, would be required in order for Alexandra to end up with $19,000?

Answer 1

4.6%

Explanation:

`A=Pe^(rt) \\19000=12000e^(10r) \\\\r=0.0459\\\\0.0459*100=4.59\\4.59=4.6%`