document.write( "Question 1149204: If interest is compounded continuously at the rate of 3% per year, approximate the number of years it will take an initial deposit of $7000 to grow to $27,000. (Round your answer to one decimal place.)\r
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Algebra.Com's Answer #854501 by ikleyn(53853) $\"\"$ $\"About$

You can put this solution on YOUR website!
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\n" ); document.write( "If interest is compounded continuously at the rate of 3% per year, approximate the number of years
\n" ); document.write( "it will take an initial deposit of $7000 to grow to $27,000. (Round your answer to one decimal place.)
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\n" ); document.write( "\n" ); document.write( "        The solution and the answer in the post by @addingup to both problems are incorrect.\r
\n" ); document.write( "\n" ); document.write( "        It is because his starting setup equation is incorrect, which is a conceptual/strategic error.\r
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\n" ); document.write( "\n" ); document.write( "        I came to bring a correct solution.\r
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document.write( "The setup equation for this continuously compounded account is\r\n" );
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document.write( "    27000 = ,    <<<---===  It is a standard translation\r\n" );
document.write( "                                           for a continuously compound account\r\n" );
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document.write( "where 't' is the time in years.\r\n" );
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document.write( "Divide both sides by 7000 to get\r\n" );
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document.write( "     = .\r\n" );
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document.write( "Take natural logarithm of both sides\r\n" );
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document.write( "     = 0.03*t.\r\n" );
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document.write( "Express 't' and calculate\r\n" );
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document.write( "    t =  = 44.9976 years.\r\n" );
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document.write( "It is reasonable to round it to the closest integer, which is 45 years.\r\n" );
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document.write( "ANSWER.  45 years.\r\n" );
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\n" ); document.write( "\n" ); document.write( "Solved correctly, so you can learn/teach safely from my post.\r
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\n" ); document.write( "\n" ); document.write( "Ignore the post by @addingup, since it is wrong solution and wrong teaching.\r
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