document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=420664>Question 420664</A>: <I><SPAN STYLE=\"word-break: break-all;\"> If Marcelle deposits $250,000 into a mutual fund which pay an annual interest rate of 5% compounded continuously. Assuming that there are no further deposits and there were no withdrawals, how long must she wait before her investment reaches $1 million? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #293856 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=293856\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> If Marcelle deposits $250,000 into a mutual fund which pay an annual interest rate of 5% compounded continuously. Assuming that there are no further deposits and there were no withdrawals, how long must she wait before her investment reaches $1 million?<BR>\n" );
document.write( "----------------------------<BR>\n" );
document.write( "A(t) = Ao*e^(rt)<BR>\n" );
document.write( "1,000,000 = 250,000*e^(0.05t)<BR>\n" );
document.write( "e^(0.05t) = 4<BR>\n" );
document.write( "----<BR>\n" );
document.write( "Take the natural log of both sides:<BR>\n" );
document.write( "0.05t = 4<BR>\n" );
document.write( "---<BR>\n" );
document.write( "t = 80 years<BR>\n" );
document.write( "=====================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H.<BR>\n" );
document.write( "=============== </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );