Question

How long will it take for $2100 to grow to $47200 at an interest rate of 4.5% if the interest is compounded continuously? Round the number of years to the nearest

hundredth

Answer 1

hi,

you have then : 2100 * 1.045 ^n = 47 200

1.045^n = 47200 /2100

1.045^n = 472/21

n = ln ( 472/21 ) / ln ( 1.045)

n ≈71 years

let's check : 2100 *1.045^70 = 45746,68 and 2100 *1.045^71 = 47805.28