Question

$1000 in a savings account where his money is compounded continuously at 6%. How long will it take him to have $1200 in his bank account? Round to the nearest tenth of a year.

A) 1.3 years
B) 3.0 years
C) 9.1 years
D) 17.1 years

Answer 1

Years = Natural Logarithm(Total / Principal) / rate
Years = ln (1,200 / 1,000) / .06
Years = ln (6 / 5) / .06
Years = ln (1.2) / .06
Years = 0.18232155679 / .06
Years = 3.0386926132
Years = 3.0 (rounded)

answer is B