Question
At what interest rate would a deposit of $45,000 grow to $110,682 in 30 years with continuous 38) compounding?
Answers
tchrwill
Continuous Compound Interest Formula
where FV = Pe^(rt)
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of interest bearing years
FV = amount after time t
110,682 = 45,000e^(30r) from which r = .03 or an annual rate of 3%.
where FV = Pe^(rt)
P = principal amount (initial investment)
r = annual interest rate (as a decimal)
t = number of interest bearing years
FV = amount after time t
110,682 = 45,000e^(30r) from which r = .03 or an annual rate of 3%.