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.)
Answer by addingup(3677)   (Show Source):
You can put this solution on YOUR website! t = ln(A/P)/ln(1 + r) = [ln(A) - ln(P)]/ln(1 + r)
t = ln(27,000/7,000)/ln(1+0.03) = [ln(27,000 - ln(7,000]/ln(1+0.03)
t = [ln(27,000 - ln(7,000]/ln(1+0.03)
t = (10.2 - 8.85)/0.02956
t = 45.67
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Check:
7,000(1.03)^45.67 = 27,000.64 round to a whole number: 27,000
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Happy learning
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