Finance question for math

Mathematics
Tutor: None Selected Time limit: 1 Day

How long will it take for $99,000 to grow to $45,700 at an interest rate of 12.4% if the interest compounded continuously? Round the number of years to the nearest hundredth.

Jul 21st, 2015

Thank you for the opportunity to help you with your question!

use the equation A = Pe rt for interest compounded continuously

A = Pe rt

$99,000 = $45,700 e (0.124) t

e (0.124) t = $99,000 / $45,700 

e (0.124) t = 2.1663

(0.124) t = ln(2.1663)

(0.124) t = 0.773

t = 6.23 years

Hence, the answer is 6.23 years rounded to the nearest hundredth.

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Jul 21st, 2015

That is not the correct answer. That answer is not a choice to choose from. 1.23, 1233.52, .68, or 12.34

Jul 21st, 2015

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