Question

QUESTION 6 . 1 POINT

$12,000 is invested at 6.8% compounded continuously. After how many years, to the nearest hundredth, will it be worth
$36,230?
Provide your answer holom

Answer 1

9514 1404 393

Answer:

16.25

Explanation:

The value of principal P compounded continuously at annual rate r for t years is ...

A = Pe^(rt)

Then t is ...

t = ln(A/P)/r

t = ln(36230/12000)/0.068 ≈ 16.2497

The investment will be worth $36,230 after 16.25 years.