Question

Suppose you deposit $100 in a savings account where the interest earned is compounded continuously at a rate of 2%. How many years will it take the balance in the account to reach $10,000 (round your answer to

the nearest year)?

A. 231 years
B. 230 years
C. 234 years
D. 232 years

Answer 1

Answer:T = 230.259 years

So choice B

Explanation:

T = r / 100

T : 2 /100 = 0.02 per year

Now let’s solve for t using this equation

In ( A/P) / r

In ( 10000/100) / 0.02

Put this on calculator u get 230.259 years and now to the nearest year

is 230 years.

Hope this help