SOLUTION: How many years will it take $6,000 to amount to $8,000 if it is invested at an annual rate of 9.0% compounded continuously?

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Question 624014: How many years will it take $6,000 to amount to $8,000 if it is invested at an annual rate of 9.0% compounded continuously?
Answer by EdwinParker(16)   (Show Source): You can put this solution on YOUR website!
How many years will it take $6,000 to amount to $8,000 if it is invested at an annual rate of 9.0% compounded continuously?
A = Pert

A = final amount = 8000
P = beginning amount = 6000
r = rate expressed as a decimal = .09
t = the number of years = (unknown)

8000 = (6000)e(.09)t

Divide both sides by 6000

 = e.09t

 = e.09t

Since A = eB is equivalent to B = ln(A),

,09t = ln()

   t = ()÷.09

   t = 14.81481481...

Answer: about 15 years.

Edwon
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