Question

Adam invests $6139 in a retirement account with a fixed annual interest rate compounded continuously. After 17 years the balance reaches $8,624.97. What is the interest rate of the account? Help! Working out required.

Answer 1

Answer:

u

Step-by-step explanation:

Answer 2

Answer:

2.38% annual interest rate

Step-by-step explanation:

We have the initial value that is $6139 and the final value that is $8,624.97 the initial value is a 100% and the final value is 100%+17x%  where x is the annual interest rate, then:

$\dfrac{8624,97\cdot 100\%}{6139\cdot (100\%+17x\%)}=1$

$\dfrac{8624,97\cdot 100\%}{6139}=100\%+17x\%$

$\dfrac{862497\%}{6139}-100\%=17x\%$

$140.49\%-100\%=17x\%$

$40.49\%=17x\%$

$\dfrac{40.49\%}{17}=x\%$

$2.38\%=x\%$