$100 is deposited in the bank at 5% interest compounded continuously. What will be the average value of the money in the account
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Answer: 9.9 years.
Step-by-step explanation:
If interest is compounded continuously, then formula to compute final amount A = , where P =initial amount, r= rate of interest , t=time.
Given: P= $61,000, r= 1.9% =0.019 , A = $ 73600
Substitute all values in formula
Taking natural log on both sides
Hence, the required time = 9.9 years.