question: An investment of $100 is now valued at $149.18 the interest rate is 8% per year, compounded continuously about how long has the money been invested
Answer:
5.2 years
Explanation:
Applying
A = P(1+R/100)ⁿ.......................... Equation 1
Where A = amount, P = principle, R = rate, n = time.
From the question,
Given: A = $149.18, P = $100, R = 8%
Substitute these values into equation 1 and solve for n
149.18 = 100(1+8/100)ⁿ
149.18/100 = (1+8/100)ⁿ
1.4918 = (1+0.08)ⁿ
1.4918 = (1.08)ⁿ
Taking the Logarithm of both side
Log(1.4918) = Log(1.08)ⁿ
Log(1.4918) = nLog(1.08)
n = Log(1.4918)/Log(1.08)
n = 0.1737/0.0334
n = 5.2 years.