Question

Andrea davis plans to invest $600 into a money market account. find the interest rate that is needed for the money to grow to $1240 in 14 years if the interest rate is compounded continuously

Answer 1

The interest rate is 5.2%

Step-by-step explanation:

A = Pe^rt

A = $1240

P = $600

t = 14 years

1240 = 600e^14r

e^14r = 1240/600 = 2.067

e^14r = 2.067

14r = ln 2.067

14r = 0.726

r = 0.726/14 = 0.052 = 5.2%