An investor wants to analyze the earnings of a mutual fund account. Seven years ago, the value of the account wa

Question

An investor wants to analyze the earnings of a mutual fund account. Seven years ago, the value of the account was $23,000 and it is now worth $28,750 (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?

Round the answer to the nearest hundredth of a percent

Interest Rate ≈     ?   %

Answer 1

28750 = 23000e^7r

1.25 = e^7r

ln 1.25 = 7r

Can you solve for r and answer?