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Allison is going to invest $7,800 and leave it in an account for 12 years. Assuming the

interest is compounded continuously, what interest rate, to the nearest hundredth of
a percent, would be required in order for Allison to end up with $11,800?

1 Answer

3 votes

Answer:

r=0,035

Explanation:

Equation is A=
Pe^(r*t)

P= 7800

t= 12

A= 11800

To find r


Ln(A)/(P) = r*t


((Ln(11800)/(7800) ))/(12) = r

r=0,035

User Carlon
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