SOLUTION: Suppose you invest $7000 at an annual rate of 6.25% compounded continuously. How much time will it take for the investment to reach a value of $56000?
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Question 194016: Suppose you invest $7000 at an annual rate of 6.25% compounded continuously. How much time will it take for the investment to reach a value of $56000? Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! Suppose you invest $7000 at an annual rate of 6.25% compounded continuously. How much time will it take for the investment to reach a value of $56000
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A(t) = P*e^(rt)
56000 = 7000*e^(0.0625t)
e^(0.0625t) = 8
Take the natural log to get:
0.0625t = ln(8)
t = 33.27 years
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Cheers,
Stan H.
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