Question

if $850 grows to $1125 at an interest rate of 12.6% compounded continuously, how long has the money been in the account?

Answer 1

22 years approx.

Explanation:

Step one

Given data

Principal P= $850

final amount A= $1125

rate r= 12.6%

Calculate time, solve for t

t = ln(A/P) / r

Step two:

Substitute

t= ln (1125/850)/0.0126

t=ln 1.32/0.0126

t= 0.277/0.0126

t=21.9

t= 22 years approx.