In the year 1990, an investment was worth $26200. In the year 1997, this investment was worth $36000. The value of this investment is what?

Question

In the year 1990, an investment was worth $26200. In the year 1997, this investment was worth $36000.

The value of this investment is ______ at a rate of ______

Answer 1

P=26200

A= 36000 seven years later

A=Pe^rt

360/262 = e^7r

7r = ln(360/262)

r = (ln360/262))/7 = about .0454= 4.54% annual interest rate

the current value of the investment in 2024 is

A= 26200e^.0454(34) = about $122,628.49