Solve the problem.
-Suppose that $16,000 is invested in a bond fund and the account grows to $18,552.21 in 4 yr. Use the model $$A = P e ^ { r t }$$ to determine the average rate of return under continuous compounding. Round to
The nearest tenth of a percent.
A) 1.8%
B) 1.2%
C) 1.5%
D) 3.7%

Question

Quizplus · Accepted Answer

Using the formula $A = P e^{rt}$, we have $18,552.21 = 16,000 e^{4r}$. Solving for $r$, we get $r \approx 0.037$, which is 3.7% when rounded to the nearest tenth of a percent.

Solve the Problem A=PertA = P e ^ { r t }A=Pert

Solve the Problem $A = P e ^ { r t }$