An investor bought stock for $40,000. Nine years later, the stock was sold for $50,000. If interest is compounded continuously, what annual nominal rate of interest did the original $40,000 investment earn? The annual nominal rate of interest earned is ☐ %. (Round to two decimal places as needed.)
An investor bought stock for $40,000. Nine years later, the stock was sold for $50,000. If interest is compounded continuously, what annual nominal rate of interest did the original $40,000 investment earn? The annual nominal rate of interest earned is ☐ %. (Round to two decimal places as needed.)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter8: Sequences, Series, And Probability
Section8.4: Geometric Sequences And Series
Problem 7SC
Related questions
Question
Transcribed Image Text:An investor bought stock for $40,000. Nine years later, the stock was sold for $50,000. If interest is compounded continuously, what annual nominal rate of interest did the original $40,000 investment earn?
The annual nominal rate of interest earned is ☐ %.
(Round to two decimal places as needed.)
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 6 images
Recommended textbooks for you
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,