Exponential Equations in Financial Contexts — Quiz
Question 9 • Financial Math
An investment has an annual interest rate of 4.8% compounded daily. One investor starts with $2,500 and will review the investment when it reaches $2,886.38 Which equation can the investor use to find the number of years, t , it will take before the investment needs to be reviewed?
Answer
A
2 comma 500 is equal to 2 comma 886 point 3 8 times open paren 1 plus 0 point 0 4 8 over 365 close paren to the t th power
B
2 comma 500 is equal to 2 comma 886 point 3 8 times open paren 1 plus 0 point 0 4 8 over 365 close paren raised to the 365 t power
C
2 comma 886 point 3 8 is equal to 2 comma 500 times open paren 1 plus 0 point 0 4 8 over 365 close paren to the t th power
D
2 comma 886 point 3 8 is equal to 2 comma 500 times open paren 1 plus 0 point 0 4 8 over 365 close paren raised to the 365 t power