Question

Piper is going to invest $74,000 and leave it in an account for 11 years. Assuming the

interest is compounded continuously, what interest rate, to the nearest hundredth of
a percent, would be required in order for Piper to end up with $108,000?

Answer 1

108000= 74000e^r11
Divide both sides by 74000
1.45946=e^11r
Ln1.45946=11r
.37807=11r
Divide by 11
.03437
3.44%.