Precalculus (6th Edition) Blitzer

Published by Pearson
ISBN 10: 0-13446-914-3
ISBN 13: 978-0-13446-914-0

Chapter 7 - Cumulative Review Exercises - Page 880: 35


he required rate of interest is 10.99%.

Work Step by Step

Let us assume, $ A $ is the total amount, $ P $ is the principal amount, $ r $ is the rate of interest, and $ t $ is the number of years. Therefore, $\begin{align} & A=\$18,000\\&P=\$6000\\&n=10\end{align}$ And the interest rate can be computed using the formula: $\begin{align} & A=P{{e}^{rt}} \\ & 18,000=6000{{e}^{10r}} \\ & {{e}^{10r}}=3 \\ & r=0.1099 \end{align}$ Therefore, the percentage rate of interest is: $ r=10.99$ %
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