Question

An initial investment of $100 is now valued at $150. The annual interest rate is 5%, compounded

Answer 1

Answer:

  8 years

Step-by-step explanation:

100e^(.05t) = 150 . . . . . a better model of the situation

e^(.05t) = 150/100 . . . . divide by 100

0.05t = ln(1.5) . . . . . . . . take natural logs

t = ln(1.5)/0.05 ≈ 8.11 . . . . divide by the coefficient of t

The money has been invested for about 8 years.