Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Explore thousands of questions and answers from a knowledgeable community of experts on our user-friendly platform. Experience the convenience of finding accurate answers to your questions from knowledgeable experts on our platform.

Dale has $2,000 to invest. He has a goal to have $4,200 in this investment in 12 years. At what annual rate compounded continuously will Dale reach his goal?
Dale would reach his goal with an annual interest rate of %.
(Simplify your answer. Round to two decimal places as needed.)

Sagot :

bernardchan

Answer:

Dale would reach his goal with an annual interest rate of 6.18%.

Step-by-step explanation:

For compounding continuously, recall the following equation:

[tex]A = P(e)^{rt}[/tex]

A = final amount ($4200)

P = principal amount ($2000)

r = rate (unknown)

t = time (12 years).

You'll have to use natural logs for these types of questions. Remember that ln (e) = 1.

See the work done in the attached file.

Hope this helps!

View image bernardchan
We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. We hope this was helpful. Please come back whenever you need more information or answers to your queries. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.