Use the model A = Pe^{rt} or A = P (1 + frac{r}{n})^{nt}, where A is the future value of P dollars invested at interest rate r compounded continuously or n times per year for t years. A $3500 bond grows to $4156.87 in 4 yr under continuous compounding. Find the interest rate. Round to the nearest whole percent. The interest rate is approximately %.
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87 = 3500e^(r*4) Show more…
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