Question

PLEASE HELP !!!!

Your mom deposits $3500 into an account that pays 4.75% annual interest compounded continuously. How many years will it take for the amount of money in the account to reach $15,000? Just enter a numerical answer for the number of years rounded to the hundredth place.

Answer 1

About 31 years

Explanation:

Given data

Principal= $3500

Rate= 4.75%

Final amount= $15,000

Time=??

The expression for time on compound interest is

Calculate time, solve for t

t = ln(A/P) / r

substitute

Calculate time, solve for t

t = ln(15000/3500) / 0.0475

t= ln(4.2857)/ 0.0475

t= 1.4552/0.0475

t= 30.63 years

Hence it will take about 31 years