# Find the interest rate needed

Anonymous
account_balance_wallet \$5

### 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

Athul K
School: UC Berkeley

hello

A = Pe^rt

5000 = 4000 e^(4t)

apply ln on both sides

ln 1.25 = 4t ln e

t= ln 1.25 / 4

t = .0558

t%= 5.58%

5.58 %/yr

hope you understood..please message if you have any doubts...thank you

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Anonymous
Good stuff. Would use again.

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