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Licemer1 [7]
3 years ago
9

An investment of $100 is now valued at $149.18 the interest rate is 8% compounded continuously about how long has the money been

invested
Mathematics
1 answer:
deff fn [24]3 years ago
7 0

question: An investment of $100 is now valued at $149.18 the interest rate is 8% per year, compounded continuously about how long has the money been invested

Answer:

5.2 years

Step-by-step explanation:

Applying

A = P(1+R/100)ⁿ.......................... Equation 1

Where A = amount, P = principle, R = rate, n = time.

From the question,

Given: A = $149.18, P = $100, R = 8%

Substitute these values into equation 1 and solve for n

149.18 = 100(1+8/100)ⁿ

149.18/100 = (1+8/100)ⁿ

1.4918 = (1+0.08)ⁿ

1.4918 = (1.08)ⁿ

Taking the Logarithm of both side

Log(1.4918) = Log(1.08)ⁿ

Log(1.4918) = nLog(1.08)

n = Log(1.4918)/Log(1.08)

n = 0.1737/0.0334

n = 5.2 years.

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