Find the Interest Rate Needed for an Investment of $4,000

question 12

Multiple Choice

Find the interest rate needed for an investment of $4,000 to grow to an amount of $5,000 in 3 yr if interest is compounded continuously. Please round the answer to the nearest hundredth of percent. ​

• A) 7.44 %/yr
• B) 7.32 %/yr
• C) 6.39 %/yr
• D) 8.01 %/yr
• E) 7.78 %/yr

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Definitions:

Nitrogen

A chemical element with symbol N and atomic number 7, which is a critical component of all living cells, notably in proteins and nucleic acids.

Denitrification

A microbial process that converts nitrate in the soil to nitrogen gas, releasing it into the atmosphere and reducing soil fertility.

Nitrification

A microbiological process by which ammonia is oxidized to nitrate ions, an essential step in the nitrogen cycle.

Nitrogen Fixation

The process by which atmospheric nitrogen is converted into a form usable by plants, often facilitated by bacteria.