SOLUTION: what equation do I use for this type of problem? A BOND PAYS 12% ANNUAL INTEREST COMPOUNDED CONTINUOUSLY. IF $10,000 IS INVESTED INITIALLY, WHEN WILL THE BOND BE WORTH $30,000?

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Question 3986: what equation do I use for this type of problem?
A BOND PAYS 12% ANNUAL INTEREST COMPOUNDED CONTINUOUSLY. IF $10,000 IS INVESTED INITIALLY, WHEN WILL THE BOND BE WORTH $30,000? ROUND TO THE NEAREST YEAR.
Answer by longjonsilver(2297) About Me  (Show Source):
You can put this solution on YOUR website!
start with a=10,000
after 1 year, got 1.12a -->
after 2 years, got 1.12%5E2a -->
after 3 years, got 1.12%5E3a -->
after n years, got %281.12%5En%29a --> 30,000

so, 1.12%5En = 3
nlog(1.12) = log3
n = log3/log(1.12)

n = 9.69

so, it takes 10 years.


jon