Question 445645: how many years will it take for an initial investment of $30,000 to grow to $75,000? Assume a rate of interest of 4% compounded continuosly. Use the formula A=Pe rt
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! how many years will it take for an initial investment of $30,000 to grow to $75,000? Assume a rate of interest of 4% compounded continuosly. Use the formula A=Pe^(rt)
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75000 = 30,000*e^(0.04t)
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e^(0.04t) = 15/6
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Take the natural log Of both sides:
0.04t = ln(15/6)
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t = [ln(15/6)]/0.04
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t = 22.9 years
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Cheers,
Stan H.
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