Question

At the end of 20 years, an initial investment of $10,000 grows to $51,551.70. Use the continuous compounding formula to determine the annual rate of return. Write your answer in decimal form rounded to three decimal places. Do NOT convert your answer to a percentage.

Answer 1

Answer:

6

Explanation:

Answer 2

The annual rate of retutn is 0.823.

What is compoud interest?

• The mathematical formula for calculating compound hobby, A=P(1+r/n)^nt.

• Compound interest genuinely approach earning hobby in our savings, and also, in the end, at the hobby that those savings earn.
• continuously compounded interest way that an account stability is continuously incomes hobby, in addition to refeeding that interest lower back into the balance so that it, too, earns.

• continuous compounding is similar in idea to annual compounding, besides the compounding intervals are infinitely small. even though the yearly compounding system can be without difficulty changed to accommodate smaller durations.

Learn more about compound interest here:-https://brainly.com/question/24924853

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