Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 25 yr, the value is $186,475.7. Part: 0 / 2 Part 1 of 2 (a) Use the model A = Pe to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate is approximately %.

College Algebra
1st Edition
ISBN:9781938168383
Author:Jay Abramson
Publisher:Jay Abramson
Chapter6: Exponential And Logarithmic Functions
Section: Chapter Questions
Problem 8RE: Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25...
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Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 25 yr, the value is $186,475.7.
Part: 0 / 2
Part 1 of 2
(a) Use the model A = Pe to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid
rounding in intermediate steps.
The average rate is approximately
%.
Transcribed Image Text:Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 25 yr, the value is $186,475.7. Part: 0 / 2 Part 1 of 2 (a) Use the model A = Pe to determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps. The average rate is approximately %.
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