Question

How long does it take for ​$350 to grow to ​$1,050 at ​5% annual percentage rate compounded​ continuously?

It will take about [enter your response here]

years for ​$350 to grow to ​$1,050 at 5% annual percentage rate when compounded continuously.
(Round to the nearest whole number as​ needed.)

Answer 1

22 years

Explanation:

The continuous interest formula is ...

A = P·e^(rt) . . . . . balance on principal P earning interest at rate r for t years

You want to find t when ...

1050 = 350·e^(0.05t)

Dividing by 350 and taking natural logs, we have ...

ln(3) = 0.05t

t = ln(3)/0.05 ≈ 22.0

It will take about 22 years for $350 to grow to $1050.