Question

Jenny invests $3,072 in a savings accountwith a fixed annual interest ratecompounded continuously. After 8 years,the balance reaches $5,378.07. What isthe interest rate of the account?A) 6% B) 8%C) 79% D) 5%

Answer 1

Given:

Principal amount, P = $3,072

Time, t = 8 years

Final Amount, A = $5,378.07

To find the interest rate since it is compounded continuously, take the compound interest formula below: