Question

If you get $2,000 for graduation gifts and invest it in an account that earns 1.5% interest

compounded continuously, when will it grow to be $6,000? (Hint! when working the problem
round all numbers to the thousandths place)

Answer 1

It is VERY important to use the attached formula.

Years = ln (Total / Principal) / rate

Years = ln (6,000 / 2,000) / rate

Years = ln (3) / rate

Years = 1.0986122887 / .015

Years = 73.24 years

This takes a LONG time because the interest rate is extremely low.

Explanation: