181k views
5 votes
Nathan invested $75,000 in an account paying an interest rate of 6.8% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach $182,800?​

2 Answers

10 votes

Answer: 13.4

Explanation:

Delta Math Solution

User Sachin Vardhan
by
3.9k points
14 votes

Answer:

13. 5 years

Explanation:

First, convert R percent to r a decimal

r = R/100

r = 6.8%/100

r = 0.068 per year,

Then, solve our equation for t

t = ln(A/P) / n[ln(1 + r/n)]

t = ln(182,800 / 75,000) / ( 1 × [ln(1 + 0.068/1)] )

t = 13.542 years

Summary:

The time required to get a total amount of $ 182,800.00 from compound interest on a principal of $ 75,000.00 at an interest rate of 6.8% per year and compounded 1 times per year is 13.542 years. (about 13 years 7 months)

User Roberto Navarro
by
3.7k points