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2 years ago

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An investment of P dollars increased to A dollars in t years. If interest was compounded continuously, find the interest rate. (

Round your answer to the nearest whole number.)
A = 4482, P = 1000, t = 25

1 answer:

Gemiola [76]2 years ago

5 0

Answer: the interest rate is 6%

Step-by-step explanation:

The formula for continuously compounded interest is

A = P x e (r x t)

Where

A represents the future value of the investment after t years.

P represents the present value or initial amount invested

r represents the interest rate

t represents the time in years for which the investment was made.

e is the mathematical constant approximated as 2.7183.

From the information given,

A = $4482

P = 1000

t = 25 years

Therefore,

4482 = 1000 x 2.7183^(r x 25)

4482/1000 = 2.7183^25r

4.482 = 2.7183^25r

Taking ln of both sides, it becomes

Ln 4.482 = 25rLn2.7183

1.5 = 25r

r = 1.5/25 = 0.06

r = 0.06 × 100 = 6%

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$y=\frac{12}{5}x$

Remember that

If a point is on the line of direct variation

then

the point must satisfy the equation of direct variation

we're proceeding to verify each point

<u>case A)</u> point $(0,0)$

$x=0\ y=0$

Substitute the value of x and y in the direct variation equation

$0=\frac{12}{5}*0$

$0=0$ -------> is true

therefore

the point $(0,0)$ is on the line of direct variation

<u>case B)</u> point $(2.5,6)$

$x=2.5\ y=6$

Substitute the value of x and y in the direct variation equation

$6=\frac{12}{5}*2.5$

$6=6$ -------> is true

therefore

the point $(2.5,6)$ is on the line of direct variation

<u>case C)</u> point $(3,10)$

$x=3\ y=10$

Substitute the value of x and y in the direct variation equation

$10=\frac{12}{5}*3$

$10=7.2$ -------> is not true

therefore

the point $(3,10)$ is not on the line of direct variation

<u>case D)</u> point $(7.5,18)$

$x=7.5\ y=18$

Substitute the value of x and y in the direct variation equation

$18=\frac{12}{5}*7.5$

$18=18$ -------> is true

therefore

the point $(7.5,18)$ is on the line of direct variation

<u>case E)</u> point $(12.5,24)$

$x=12.5\ y=24$

Substitute the value of x and y in the direct variation equation

$24=\frac{12}{5}*12.5$

$18=30$ -------> is not true

therefore

the point $(12.5,24)$ is not on the line of direct variation

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Substitute the value of x and y in the direct variation equation

$36=\frac{12}{5}*15$

$36=36$ -------> is true

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the point $(15,36)$ is on the line of direct variation

therefore

<u>the answer is</u>

$(0,0)$

$(2.5,6)$

$(7.5,18)$

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