Solve the problem.
-Ben Franklin bequeathed $4000.00 to the city of Boston in 1790. Assuming the fund grew to $9 million in 200 years, find the interest rate compounded continuously that would yield this total value. Round to the nearest
Tenth when necessary.
A) 3%
B) 6.1%
C) 3.9%
D) 1.9%

Question

Quizplus · Accepted Answer

To find the interest rate compounded continuously, we use the formula A = Pe^(rt), where A is the amount after time t, P is the principal amount, r is the rate, and t is the time in years. Plugging in the values: 9,000,000 = 4,000e^(200r). Solving for r gives approximately 0.039, or 3.9%.

Solve the Problem. -Ben Franklin Bequeathed $4000.00 to the City of Boston in of Boston