SOLUTION: How long (in years) would $600 have to be invested at 11.2%, compounded continuously, to earn $400 interest? (Round your answer to the nearest whole number.)

Question 1104177: How long (in years) would $600 have to be invested at 11.2%, compounded continuously, to earn $400 interest? (Round your answer to the nearest whole number.)
Answer by ankor@dixie-net.com(22740) (Show Source): You can put this solution on YOUR website!
How long (in years) would $600 have to be invested at 11.2%, compounded continuously, to earn $400 interest?
(Round your answer to the nearest whole number.)
:
The continuous interest formula: , where:
A = amt after t time
P = initial amt
r = interest rate in decimal form
t = time in years
When we have $400 interest, the accumulated amt: 600+400 = 1000

we can rewrite it to

reduces to

using natural logs, ln of e is 1 therefore

.112t = .5108256
t =
t = 4.56 ~ 5 years to earn $400 interest
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