An investor bought stock for $\$ 20,000 .$ Five years later, the stock was sold for $\$ 30,000$. If interest is compounded continuously, what annual nominal rate of interest did the original $\$ 20,000$ investment earn?
Added by Dominique M.
Step 1
Step 1: Use the formula for continuous compounding: \(A = A_0 e^{rt}\), where \(A\) is the final amount, \(A_0\) is the initial investment, \(r\) is the annual nominal interest rate, and \(t\) is the time in years. Show more…
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