# Chapter 7 - Exponential Functions - 7.5 Compound Interest and Present Value - Exercises - Page 355: 19

$$R\approx \1200/year$$

#### Work Step by Step

For a large number of years, we have $$PV\approx\frac{R}{r}$$ Then for $PV=20000 ,\ \ \ r=0.06$, \begin{align*} PV&\approx\frac{R}{r}\\ 20000& \approx\frac{R}{0.06} \end{align*} Hence $$R\approx \1200$$

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