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!

We use the continuous compound interest formula A = Pe^rt   where A is the final amount, P is the initial amount, r is the interest rate, and t is the time in years.

Then,

99,000 = 45700e^(0.124*t)

e^0.124t = 99000/45700 = 2.1663

ln(e^0.124t) = ln(2.1663)

0.124t = 0.773

t = 0.773/.124

t = 6.23 years

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

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Jul 21st, 2015
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Jul 21st, 2015
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