Question

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 investment to grow to $15,000. (Round to two decimal places as needed.) TrueCar Enter your answer in the answer box. Prerequisite Skills Test for Finte Mathematics Customize . Getting Ready for Finite Mathematics Test A the heart bypass. Learn more

Answer 1

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