Question

Makayla invested $630 in an account paying an interest rate of 5.5% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach $1,860?

Answer 1

20

Explanation:

Answer 2

time required is 20.23 year

Explanation:

given data

invested = $630

interest rate = 5.5% = 0.055

future value = $1,860

solution

we get here time period that is express as

future value = invested amount ×
`(1+r)^t` ......................1

put here value and we get

$1,860 = $630 ×
`(1+0.055)^t`

take here ln both side we get

`ln ( (1860)/(630) )` = t × ln (1.055)

1.0826 = t × 0.0535

t = 20.23

so time required is 20.23 year