SOLUTION: How long will it take $500 to grow to $2,000 at an interest rate of 4% if the interest is compounded continuously?
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Question 63245: How long will it take $500 to grow to $2,000 at an interest rate of 4% if the interest is compounded continuously?
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
How long will it take $500 to grow to $2,000 at an interest rate of 4% if the interest is compounded continuously?
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Formula: A=Pe^(rt)
2000=500e^(0.04t)
4=e^(0.04t)
Take the natural log of both sides to get:
ln4 = 0.04t
t=[ln4]/0.04
t=34.66 years.
Cheers,
Stan H.
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