Suppose that $13,000 is invested in a bond fund and the account grows to $14,348.79 in 4 yr. Part 1 of 2 (a) Use the model A-Peto determine the average rate of return under continuous compounding. Round to the nearest tenth of a percent. Avoid rounding in intermediate steps The average rate of return under continuous compounding is approximately 2.5 %.
Part 2 of 2 (b) How long will it take the investment to reach $18,000 if the rate of return continues? Round to the nearest tenth of a year. Round values in intermediate steps to three decimal places It will take the investment approximately yr to reach $18,000 if the rate of return continues