Question

If Tanisha has ​$nbsp 100 100 to invest at 66​% per annum compounded semiannuallysemiannually​, how long will it be before she has ​$nbsp 150 150​? If the compounding is​ continuous, how long will it​ be?

Answer 1

time is 6.76 years

Explanation:

given data

amount = $150

payment = $100

rate r = 6% = 0.06

to find out

time period t

solution

we know it is compounding continuous

so we will apply here formula that is

amount = payment ×
`e^(rt)` ..........1

put here all value we get

amount = payment ×
`e^(rt)`

150 = 100 ×
`e^(0.06t)`

take ln both side

ln 1.5 =
`e^(0.06t)`

0.40546 = 0.06t

t = 0.40546 / 0.06

t = 6.76

so time is 6.76 years