Question

Jenn invests $2150 at 2% compounded continuously. How many years will it take her to accumulate $2733.19 in the account?

Answer 1

12 years

Explanation:

From the formula;

A = P(1 + r)^n

A = Amount = $2733.19

P = Principal = $2150

r = rate = 2%

n = time in years = ???

2733.19 = 2150(1 + 0.02)^n

2733.19/2150 = (1 + 0.02)^n

1.27 = (1.02)^n

Taking logarithm of both sides

log 1.27 = n log 1.02

n= log 1.27/log 1.02

n= 0.1038/0.0086

n = 12 years