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Nimfa-mama [501]
3 years ago
7

How long will it take a $800 investment to be worth $900 if it is continuously compounded at 11% per year?

Mathematics
1 answer:
Kruka [31]3 years ago
3 0
The formula is
A=p e^rt
A future value 900
P present value 800
E constant
R interest rate 0.11
T time?

We need to solve for t
T=[log (A/p)÷log (e)]÷r
T=(log(900÷800)÷log(e))÷0.11
T=1.07 years round your answer to get 1 year
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