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boyakko [2]
2 years ago
9

Suppose that $2000 is invested in an account that pays interest compounded continuously. Find the amount of time that it would t

ake for the account to grow to $4000 at 5.25%
Business
1 answer:
PolarNik [594]2 years ago
8 0

Answer:

It will take 13.2 years to reach $4,000.  

Explanation:

Giving the following information:

PV= $2,000

FV= $4,000

i= 0.0525

<u>To calculate the time required to reach the objective, we need to use the following formula:</u>

n= ln(FV/PV) / i

n= ln(4,000/2,000) / 0.0525

n= 13.2

It will take 13.2 years to reach $4,000.  

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