Solve the problem.
-Jennifer invested $6000 in her savings account for 7 years. When she withdrew it, she had $9004.82. Interest was compounded continuously. What was the interest rate on the account? Round to the nearest tenth of a
Percent.
A) 5.7%
B) 5.95%
C) 5.9%
D) 5.8%

Question

Quizplus · Accepted Answer

The formula for continuous compounding is A = Pe^(rt), where A is the amount, P is the principal, r is the rate, and t is the time. Plugging in the values: 9004.82 = 6000 * e^(7r). Solving for r gives approximately 0.058, which is 5.8% when rounded to the nearest tenth of a percent.

Solve the Problem. -Jennifer Invested $6000 in Her Savings Account for 7 Years