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06-12-2017
Advanced Placement (AP)

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Find the rate of annual interest compounded continuously earned on the investment. (Round your answer to two decimal places.) An investment grows from $100 to $170 in 30 months.

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06-12-2017

Pe^{rt} = Compound interest formula
100e^{30r} = 170
e^{30r} = 17/10
30r = ln (17/10)
r = [ln (17/10)]/30
r = .02 = 2 percent

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