SOLUTION: Teka is saving up money for a down payment on a motorcycle. She currently has $5377, but knows she can get a loan at a lower interest rate if she can put down $6208. If she inves

Question 1153743: Teka is saving up money for a down payment on a motorcycle. She currently has $5377, but knows she can get a loan at a lower interest rate if she can put down $6208. If she invests the $5377 in an account that earns 4% annually, compounded continuously, how long will it take Teka to accumulate the $6208?
Answer by ikleyn(52798) (Show Source): You can put this solution on YOUR website!
.


6208 = ,  t is the time in years.


================>


 = 


1.154547 = 


Take the natural logarithm of both sides


ln(1.154547) = 0.04*t


t =  = 3.59 of an year, approximately.


So, the answer is:  3.6 years is enough = 3 years and 219 days = 3 years, 7 months and 9 days 
                    (counting 365 days in an year and 30 days in a month).

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