Question

Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 20 yr, the value is $156,372.8. (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. The average rate is approximately 9.2 %. (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. It will take approximately years.

          Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 20 yr, the value is $156,372.8.

(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.
The average rate is approximately 9.2 %.

(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.
It will take approximately years.

Suppose that 25,000 from a retirement account is invested in a large cap stock fund. After 20 yr, the value is156,372.8.

(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.
The average rate is approximately 9.2 %.

(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.
It will take approximately years.

Added by Justin J.

Precalculus with Limits

Ron Larson 2nd Edition

Instant Answer

Solved by Expert Anas Venkitta

01/02/2022

Step 1

80 - $P$ is the principal amount invested, which is $525,000 - $r$ is the average rate of return - $t$ is the time in years, which is 20 Show more…

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Suppose that $25,000 from a retirement account is invested in a large cap stock fund. After 20 yr, the value is $156,372.8. (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. The average rate is approximately 9.2%. (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. It will take approximately years.