Question

jennifer deposited $2500 in her savings account. her account compounds interest continuously at a rate of 6.5%. How long will it take the amount in the account to be $3000

Answer 1

2.8 years

Explanation:

continuous compounding formula:

A = Pe^rt

3000 = 2500e^.065t

ln(6/5) ÷ .065 ≈ 2.8 years