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Can u show me how to find the interest rate? Suppose that $10,000 is invested rate r% per year,?

compounded contiuously, and grows to $11140.48 in 2 years.

Update:

ty TJ u r great.

1 Answer

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  • 1 decade ago
    Favorite Answer

    You would you use the equation

    FV = PV * e ^ ( r * N )

    where

    FV = Future Value = 11,140.48

    PV = Present Value = 10,000

    N = 2

    so calculating it would be:

    11,140.48 = 10,000 * e ^ (r *2)

    ln(1.114)=r*2

    .108 = r *2

    r = .054

    5.4%

    Source(s): Senior Analyst at http://www.crownsinvesting.com/
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