Question

Kayla invested $98,000 in an account paying an interest rate of 5.5% compounded continuously. Assuming no deposits or withdrawal are made, how long would it take, to the nearest year, for the value of the account to reach $129,000

Answer 1

35299.88

Explanation:

Answer 2

you have the following data for this exercise, initial capital C = $98,000 , the rate of interest of i = 5,5 %, and the final amount M = $129,000

YOU NEED CALCULATE THE TIME n

of this formula you can find n, M = C(1+i)^n, then log M/C = nLOG(1+i),

n = 0,11n = LOGM/C÷LOG (1+i), n = LOG 129,000/98,000÷LOG ( 1+0,05), WHERE 925589/0,0211893 = 5,628111≅5, IT WOULD TAKE APPROXIMATELY 5 YEARS