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

use the equation A = Pe rt for interest compounded continuously

A = Pe rt

$45,700 =  $9,900 e (0.124) t

e (0.124) t = $45,700 / $9,900

e (0.124) t = 4.616

(0.124) t = ln(4.616)

(0.124) t = 1.530

t = 12.34 years

The answer is 12.34 years.

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Jul 21st, 2015

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