Math Word Problem

Question

Suppose you deposit $1 for 1 year at each of these two banks:

1. Bank A, which offers an annual rate of 3.28% with continuous compounding.
2. Bank B, which uses annual compounding.

What annual rate would Bank B need to use in order to give the same future value as Bank A?

Round your answer to the nearest hundredth of a percent. 

Answer 1

e^rt = rt

e^0.0328 = r

1.0333 = r

103.3% = r