SOLUTION: suppose you inherit $30,000. You find an investment account that pays 6.3% interest compounded continuously. How long will you need to keep it in the account until you have $50,000

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Question 1030370: suppose you inherit $30,000. You find an investment account that pays 6.3% interest compounded continuously. How long will you need to keep it in the account until you have $50,000?

Found 2 solutions by stanbon, solver91311:
Answer by stanbon(75887) About Me  (Show Source):
You can put this solution on YOUR website!
suppose you inherit $30,000. You find an investment account that pays 6.3% interest compounded continuously. How long will you need to keep it in the account until you have $50,000?
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A(t) = P*e^(rt)
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50,000 = 30000*e^(0.063*t)
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e^(0.063t) = 5/3
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0.063t = ln(5/3)
t = ln(5/3)/0.063
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t = 8.1 years
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Cheers,
Stan H.
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Answer by solver91311(24713) About Me  (Show Source):
You can put this solution on YOUR website!


For continuous compounding,



where is the base of the natural logarithms.

So











Plug in your numbers and do the arithmetic.

John

My calculator said it, I believe it, that settles it