SOLUTION: $300 is deposited into an account that pays 8.2% annual interest that is compounded continuously. How long will it take for the balance to reach $14,000? Round to 3 decimal places.
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Question 856387: $300 is deposited into an account that pays 8.2% annual interest that is compounded continuously. How long will it take for the balance to reach $14,000? Round to 3 decimal places. Answer by stanbon(75887) (Show Source):
You can put this solution on YOUR website! $300 is deposited into an account that pays 8.2% annual interest that is compounded continuously. How long will it take for the balance to reach $14,000? Round to 3 decimal places.
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A(t) = P*e^(rt)
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14000 = 300*e^(0.082t)
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e^(0.082t) = 140/3
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Take the ln of both sides to get:
0.082t = ln[140/3] = 3.843
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t = 3.843/0.082 = 46.866 years
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Cheers,
Stan H.
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