Math  /  Algebra

Question15. If an investment is growing continuously for tt years, its annual growth rate rr is given by the formula r=1tlnPP0r=\frac{1}{t} \ln \frac{P}{P_{0}} where PP is the current value and P0P_{0} is the amount originally invested.
An investment of $13,400\$ 13,400 in a particular Internet company in 1992 was worth $8,040,000\$ 8,040,000 in 1998 . Find this investment's average annual growth rate during this period.

Studdy Solution
Compute the average annual growth rate r r :
Substitute the value of ln600\ln 600 into the formula:
r=16×6.3969 r = \frac{1}{6} \times 6.3969
Calculate r r :
r1.0662 r \approx 1.0662
Convert r r to a percentage:
r106.62% r \approx 106.62\%
The investment's average annual growth rate during this period is approximately:
106.62% \boxed{106.62\%}

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