SOLUTION: 2. How long will it take $300 to grow to $450 in an account earning 5% interest compounded monthly? compound continuously?
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Question 1149086: 2. How long will it take $300 to grow to $450 in an account earning 5% interest compounded monthly? compound continuously?
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
this is 450=300(1+.05/12)^nt compoundings
1.5=nt(log1+(.05)/12))
log both sides
0.1761=nt *0.0018 the latter being log 1.004166667
nt= quotient=97.52 compoundings or 8 years 1.5 months or about 8.13 years
continuously it is 1.5=e^(rt)
ln 1.5=rt=0.05*t
t=8.109 years
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