Suppose that $50000 from a retirement account is invested in a large cap stock fund. After 20 yr, the value is $173,410.11 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. Avoid rounding in intermediate steps. (b) How long will it take the investment to reach one–quarter million dollars? Round to the nearest tenth of a year. Round values in intermediate steps to three decimal places.

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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Suppose that $50000 from a retirement account is invested in a large cap stock fund. After 20 yr, the value is $173,410.11

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. Avoid rounding in intermediate steps.

(b) How long will it take the investment to reach one–quarter million dollars? Round to the nearest tenth of a year. Round values in intermediate steps to three decimal places.

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