+37091 Answered earlier today....usually you will have to use LOG or ln to get the exponent isolated.
In this problem posted ealier today:
30000 = 10500e^12r divide both sides by 10,500
2 6/7 = e^12r take the ln of both sides
1.049822 = 12r divide both sides by 12
r =1.049822 / 12
r=0.087485 x 100 =8.7485% this is the value of r. But, in order to compound continuously, you still have to raise to the power of e, or:
e^0.087485 =1.091426 - 1 x 100 =9.1426% - this is the EFFECTIVE annual rate. So that:
10,500 x 1.091426^12 =~30,000.
