If the account is compared to a bank account paying interest that is compounded continuously, what interest rate would the bank account have to pay to match the mutual fund accounts earnings?

Question

An investor wants to analyze the earnings of a mutual fund account. Six years ago, the value of the account was $24,000 and it is now worth $30,000(no additional deposits were made). If the account is compared to a bank account paying interest that is compounded continuously, what interest rate would the bank account have to pay to match the mutual fund accounts earnings?

Answer 1

 interest that is compounded continuously

A = Pe^rt

Six years ago, the value of the account was $24,000. t =6. P = 24,000

it is now worth $30,000. A = 30,000

30,000 = 24,000 e^r6

Solve for r then convert to percentage.