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30 May, 10:02

An initial investment of $350 is worth $429.20 after six years of continuous compounding. Find the

annual interest rate.

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  1. 30 May, 12:58
    0
    Interest Rate : 0.0346 or 3.46%

    Step-by-step explanation:

    • 429.2=350 * (1+x) ^6

    • 429.2/350 = (1+x) ^6

    • (429.2/350) ^ (1/6) = 1+x

    • (429.2/350) ^ (1/6) - 1 = x

    Check work:

    350 * (1+0.0346) ^6=429.2
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