Monday

March 30, 2015

March 30, 2015

Posted by **annonymous** on Sunday, September 19, 2010 at 9:31am.

- calculus -
**MathMate**, Sunday, September 19, 2010 at 9:46amWe calculate the amount after t=1 year at rate r under continuous compounding, and equate it to 1.078:

1.078=1*e^{rt}

take natural log on both sides:

ln(1.078)=r*1

r=ln(1.078)

=0.07511

or 7.511% p.a.

- calculus -
**annonymous**, Sunday, September 19, 2010 at 9:11pmthanks

**Answer this Question**

**Related Questions**

Math - An initial deposit of $35,000 grows at an annual rate of 7% for 23 years...

math - find the effectivee rate correspoding to 3% compounded quarterly The ...

continuous compounding? - $50,000 that was invested in 1970 was worth $134,100 ...

business pre-cal - Find the annual rate, r that produces an effective annual ...

math modeling - Determine the annual interest rate r required for an investment ...

Maths - Determine the effective annual yield (annual percentage yield) for $1 ...

Finance - Dahler Corporation has just issued a bond with a maturity of 20 years...

math - Imagine a local bank representative is assisting you with establishing an...

Finance - 1. You deposit $100,000 at an annual rate of 5.6%. If interest is ...

Finance - The future value of a $500 annual deposit to a savings account after ...