Question 84939: Greetings, My question is:
The amount A in an account after t years from an initial principle P invested at an annual rate r compounded continuously is given by A = Pert where r is expressed as a decimal. How many years will it take an initial investment of $1,000 to grow to $1,700 at the rate of 4.42% compounded continuously?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The amount A in an account after t years from an initial principle P invested at an annual rate r compounded continuously is given by A = Pert where r is expressed as a decimal. How many years will it take an initial investment of $1,000 to grow to $1,700 at the rate of 4.42% compounded continuously?
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A=Pe^(rt)
1700 = 1000e^(0.0442t)
1.7 = e^(0.0442t)
Take the natural log of both sides to get:
0.0442t= ln1.7
t = [ln1.7]/0.0442
t = 12.005 years
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Cheers,
Stan H.
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