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A bank account is growing with continuous compounding at a fixed annual interest rate. the balance of the bank account doubles in 6 years. which formula could be used to find the interest rate?

Respuesta :

The formula that can be used to find interest rate is Interest rate = (In 2) / 6.

What is the formula that can be used to determine the interest rate?

When a bank account is growing with continuous compounding, it means that both the interest accrued and the amount deposited increases continually over a specified period of time.

When the investment doubles, it means that if the future value of the investment is divided by the present value of the investment, the value would be two.

Interest rate = (In FV / PV) / number of years it would take the investment to double

Where:

  • FV = future value
  • PV = present value
  • FV / PV = 2

Interest rate = (In 2) / 6

To learn more about continuous compounding, please check: https://brainly.com/question/26476328

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