Larry has $2800 to invest and needs $3300 in 20 years

Question

What annual rate of return will he need to get in order to accomplish his goal, if interest is compounded continuously? (Round your answer to two decimals.)

Answer 1

A(t) = 2800e^(20)t.

 

3300 = 2800e^20t

(33/28) = e^20t

ln(33/28) = 20t

0.05ln(33/28 = t.

 

Now calculate the answer.