How many years will it take for an initial investment of $10,000 to grow to $15,000? Assume a rate of interest of 8% compounded continuously. It will take about years for the in…

Question

asked Apr 7, 2020 224k views

1 Answer

Eadaoin · Answer 1 · 2020-04-13T21:34:05+0000

Answer:

time required is 5.0683 years

Explanation:

given data

initial investment principal (P) = $10,000

grow amount (A) = $15,000

rate of interest (r) = 8%

to find out

time period (t)

solution

we know the formula for this

amount = principal ×
e^(rt) .................1

put the value amount , principal and r in equation 1 and we get time

amount = principal ×
e^(rt)

15000 = 10000 ×
e^(0.08t)

e^(0.08t) = 15000/10000

take ln both side and we get

ln
e^(0.08t) = ln 1.5

0.08t = ln 1.5

t = ln 1.5 / 0.08

t = 5.068314

time required is 5.0683 years