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!

I am assuming that there was a mistake in the question and that question is like this

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

If my interpretation is wrong please do tell me and I shall correct my answer

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Principal, P = $45,700

Amount, A = $99,000

Rate of interest, r = 12.4% = 12.4/100 = 0.124

Time, t = ?


The compound interest formula for continuous compounding is

 

Substitute the values of A, P and r into the equation



ANSWER: Time, t = 6.23 years

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Jul 21st, 2015

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