Mathematics: 1) sally needs $20,000 in 4 years. she has $10,000 to invest. if interest is compounded continuously, what rate is required for sally to meet her goal?

1) sally needs $20,000 in 4 years. she has $10,000 - id1200004100003518195, Jacobstoltzfus

stevenabdullatif16

08.01.2022

$17.33\%$

Step-by-step explanation:

we know that

The formula to calculate continuously compounded interest is equal to

$A=P(e)^{rt}$

where

A is the Final Investment Value

P is the Principal amount of money to be invested

r is the rate of interest in decimal

t is Number of Time Periods

e is the mathematical constant number

we have

$t=4\ years\\ A=\$20,000\\ P=\$10,000$

substitute in the formula above and solve for r

$20,000=10,000(e)^{4r}$

$2=(e)^{4r}$

Applying ln both sides

ln(2)=4rln(e)

ln(2)=4r

r=ln(2)/4=0.1733

Convert to percentage

$0.1733*100=17.33\%$

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laureleiolson

21.08.2021

Step-by-step explanation:

To find the mean you add all of the numbers together and divide by the total amount of numbers you added together, example.

3+4+6+6=19 answer is 19/4

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