# Math help needed to Find the interest rate #11

Anonymous
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### Question Description

Find the interest rate needed for an investment of \$4,000 to grow to an amount of \$5,000 in 4 yr if interest is compounded continuously. Please round the answer to the nearest hundredth of percent.
 A. 5.58 %/yr B. 5.70 %/yr C. 6.63 %/yr D. 5.01 %/yr E. 5.92 %/yr

JamesM847
School: UCLA

let the annual interest rate is d then compound continuously, we have

4000*exp(d*4) =  5000

exp (4d) = 1.25

4d = ln 1.25 = 0.05578

A is correct

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Anonymous
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