SOLUTION: Gina puts $6500 into an account earning 7.75% interest compounded continuously. How long will It take for the amount in the account to grow to $7900?

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Question 1198965: Gina puts $6500 into an account earning 7.75% interest compounded continuously. How long will
It take for the amount in the account to grow to $7900?
Answer by htmentor(1343) About Me  (Show Source):
You can put this solution on YOUR website!
The formula for continuous compound interest is:
P(t) = P0*exp(rt), where P0 is the initial principal, r is the interest rate,
and t is the time.
In this case, P0 = 6500 and r = 0.0775.
P(t) = 6500*exp(0.0775*t) = 7900
7900/6500 = exp(0.0775t)
Take the natural log of both sides:
ln(7900/6500) = 0.0775t -> t = ln(7900/6500)/0.0775 -> t = 2.52 years