Question

Makayla invested $630 in an account paying an interest rate of 5.5% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach $1,860?

Answer 1

Answer:

time required is 20.23 year

Step-by-step explanation:

given data

invested = $630

interest rate = 5.5%  = 0.055

future value = $1,860

solution

we get here time period that is express as

future value = invested amount × $(1+r)^t$   ......................1

put here value and we get

$1,860 = $630 × $(1+0.055)^t$  

take here ln both side we get

$ln ( \frac{1860}{630} )$  =  t × ln (1.055)  

1.0826 = t × 0.0535

t = 20.23

so time required is 20.23 year