
William S. answered 12/04/13
Tutor
4.4
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Experienced scientist, mathematician and instructor - William
Continuously compounded interest formula:
A = Pekt
In this case we know A = $6954.84, t = 6 years and P = $5000.00.
To solve for k
ln(A) = ln(P) + kt
kt = ln(A) - ln(P)
k = [ln(A) -ln(P)]/t = (0.33)/6 years
k = 0.055 or 5.5% per year