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user100 [1]
2 years ago
7

How long (in years) would $900 have to be invested at 11.3%, compounded continuously, to earn $500 interest? (Round your answer

to the nearest whole number.)
Mathematics
1 answer:
KatRina [158]2 years ago
8 0

Answer:

6.13 years

Step-by-step explanation:

The computation of the number of years is shown below:

As we know that

Amount = Principal ×e^{rate,time period}

($900 +  $500)  = $700 × e^{11.3%, time period}

$1,400 = $700 × e^{11.3%, time period}

ln(2) = 0.113× time period

0.693147181 ÷ 11.3 = time period

= 6.13 years

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