posted by Evenlyn


the continuous growth rate is 110%

effective growth rate?__%

continuous growth rate is 9%
effective growth rate?__%

continuous growth rate is 5.5%
effective growth rate?__%

round to 2 decimal places when necessary for effective growth rate...

is there a formula for effective growth rate

  1. Reiny

    I will do the last one, you do the other two

    G(t)=650e^(0.055t) , tells me the continuous rate is 5.5%

    with a different base:
    G(t) = 650(1+r)t

    pick t = 5, (we can choose anything)
    in the first:
    g(5) = 650 e^(.055(5))
    = 650 e^(.275) = 855.7449

    in the 2nd:
    855.7449 = 650(1+r)^5
    1.316530675 = (1+r)^5
    take 5th root of both sides

    1.05654 = 1+r
    r = .05654 -----> 5.654%

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