Homework Help: algebra

Posted by Sarah on Sunday, March 18, 2012 at 11:13pm.

At what interest rate would a deposit of $45,000 grow to $110,682 in 30 years with continuous 38) compounding?

algebra - tchrwill, Monday, March 19, 2012 at 10:51am
Continuous Compound Interest Formula
where FV = Pe^(rt)
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of interest bearing years
FV = amount after time t

110,682 = 45,000e^(30r) from which r = .03 or an annual rate of 3%.

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