7.3 Practice

An initial investment of $500 produces $1,505.00 after 10 years compounded continuously. What was the annual interest rate?

• 15%

• 11%

• 48%

• 26%

An initial investment takes 12 years to double when compounded continuously. What was the annual interest rate?

• 16.521%

• 3.105%

• 27.894%

• 5.7762%

ln e⁵= 

• e⁵
• ln 5
• 5
• 5e

If $1,000 is invested at 16% interest, compounded continuously, for five years, what is the ending balance?

• $1,225,54
• $2,225.54
• $22,255.40
• $225.54

An Amount of $2,000 is deposited into a bank paying an annual interest rate of 2.85% compounded continuously. How long will it take for the money to double?

• 21.22
• 24.321
• 20.12
• 24

You invest $1600 at an annual interest rate of 4.6% compounded continuously. How much will you have in the account after 4 years.

• $800.26
• $6,701.28
• $10,138.07
• $1,923.23

Mathematical Equivalence

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