Solve the problem.
-Larry has $2200 to invest and needs $2700 in 12 years. What annual rate of return will he need to get in order to accomplish his goal, if interest is compounded continuously? (Round your answer to two
Decimals.)
A)1.71%
B)1.49%
C)2.49%
D)3.49%

Question

Quizplus · Accepted Answer

To find the annual rate of return with continuous compounding, use the formula A = Pe^(rt). Here, A = 2700, P = 2200, and t = 12. Solving for r gives r = ln(2700/2200)/12 ≈ 0.0171 or 1.71%.

Solve the Problem. -Larry Has $2200 to Invest and Needs $2700 in 12