Question

Olivia invested $2,400 in an account paying an interest rate of 4.6% 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 $3,550?

Answer 1

8.7 so 8 or 8 of they year is the amount.

Answer 2

8.7 so either 8 or 9 tenth of a year

Explanation:

Is it compounded per month? I assume

1. Compound interest formula

FV = PV(1+r/100k)^kn

FV is the future value,

PV is the present value,

n is the number of years,

k is the number of compounding periods per year

r% is the nominal annual rate of interest

2. Plug in numbers

3550 = 2400(1+4.6/100*12)^12*n

71/48 = (6023/6000)^12n

12n = logBase(6023/6000)*(71/48)

n = answer/12

n ≈ 8.70