# SOLUTION: If Marcelle deposits \$250,000 into a mutual fund which pay an annual interest rate of 5% compounded continuously. Assuming that there are no further deposits and there were no with

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 Question 420664: If Marcelle deposits \$250,000 into a mutual fund which pay an annual interest rate of 5% compounded continuously. Assuming that there are no further deposits and there were no withdrawals, how long must she wait before her investment reaches \$1 million?Answer by stanbon(57387)   (Show Source): You can put this solution on YOUR website!If Marcelle deposits \$250,000 into a mutual fund which pay an annual interest rate of 5% compounded continuously. Assuming that there are no further deposits and there were no withdrawals, how long must she wait before her investment reaches \$1 million? ---------------------------- A(t) = Ao*e^(rt) 1,000,000 = 250,000*e^(0.05t) e^(0.05t) = 4 ---- Take the natural log of both sides: 0.05t = 4 --- t = 80 years ===================== Cheers, Stan H. ===============