Question

Jan invests $2,000 in an account that compounds continuously at 4%. How long will it take to quadruple her money?

Answer 1

Compound interest is calculated by the given formula

Principle× (1+r/100)^n

Therefore after substitution we get

2000(1+5/100)^4 = $24310

We are asked to find the amount after the compound interest, which will be obtained by subtracting the principle

We get,

24310-2000= $22310

Explanation: