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

-------------------------------------------------------------------------------------------------------------------------------------

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

------------------------------------------------------------------------------------------------------------------------------

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 21st, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Jul 21st, 2015
...
Jul 21st, 2015
Dec 10th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer