Question

David invested $7,300 in an account paying an interest rate of 1.6% 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 $9,070?

Answer 1

13.6

Explanation:

A= Pe^ rt

A=9070 P=7300 t= .016

9070 = 7300e^0.016t

divide by 7300

1.24246575342= e^0.016t

ln(1.24246575342)= ln e^0.016t

ln(1.24246575342)= 0.016t

divide by 0.016

t = 13.6