Suppose that $18,000 is invested in a bond fund and the account grows to $23,344.74 in 5 yr. a. Use the model A = Pe^(rt) to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. b. How long will it take the investment to reach $30,000 if the rate of return continues? Round to the nearest tenth of a year.

Suppose that $18,000 is invested in a bond fund and the account grows to $23,344.74 in 5 yr. a. Use the model A = Pe^(rt) to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. b. How long will it take the investment to reach $30,000 if the rate of return continues? Round to the nearest tenth of a year.

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter11: Exponential And Logarithmic Functions

Section11.2: Applications Of Exponential Functions

Problem 29PS: What rate of interest to the nearest hundredth of percent is needed so that an investment of 2500...

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Limits

When it comes to calculus, limits are considered to be a very important topic of discussion. The main importance of limit lies in expressing the value of a function as it gets closer to a certain value. Also, limits can help you to understand other topics, such as continuity and differentiability better. In a broader sense, every calculus notion is a limit. Other branches of calculus have also been derived from limits.

Question

Suppose that $18,000 is invested in a bond fund and the account grows to $23,344.74 in 5 yr.

a. Use the model A = Pe^(rt) to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent.

b. How long will it take the investment to reach $30,000 if the rate of return continues? Round to the nearest tenth of a year.

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