SOLUTION: How long (in years) would $700 have to be invested at 11.7%, compounded continuously, to earn $500 interest? (Round your answer to two decimal places.)

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Question 864880: How long (in years) would $700 have to be invested at 11.7%, compounded continuously, to earn $500 interest? (Round your answer to two decimal places.)
Answer by jim_thompson5910(35256) About Me  (Show Source):
You can put this solution on YOUR website!
A = 1200 (see note below)
P = 700 (given)
r = 0.117 (given from 11.7% interest)
t = unknown (we're solving for it)


Note: If you earn $500 in interest, then you'll have 700+500 = 1200 dollars total. So A = 1200


A+=+P%2Ae%5E%28r%2At%29


1200+=+700%2Ae%5E%280.117%2At%29


1200%2F700=e%5E%280.117%2At%29


12%2F7=e%5E%280.117%2At%29


ln%2812%2F7%29=0.117%2At


ln%2812%2F7%29%2F0.117=t


4.60680769857=t Using a calculator here


t=4.60680769857


t=4.61 Rounding to two decimal places


It will take approximately 4.61 years