Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 2 - Nonlinear Functions - Chapter Review - Review Exercises - Page 114: 103

Answer

The interest rate is $9.6\%$

Work Step by Step

In the formula for continuous compounding with $P=6000$ $A=8000$ $t=3$ $A=Pe^{rt}$ $8000=6000e^{3r}$ $e^{3r}=\frac{4}{3}$ $\ln\frac{4}{3}=\ln e^{3r}$ $3r=\ln\frac{4}{3}$ $r \approx 0.096$ The interest rate is $9.6\%$
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