Question

Nathan invested $80,000 in an account paying an interest rate of 6% compounded

Answer 1

Answer:

Number of year = 13 year and 6 month approx.

Step-by-step explanation:

Given:

Amount invested = $80,000

Rate of interest = 6% compounded  continuously

Future value of investment = $175,600

Find:

Number of year

Computation:

Future value of investment = Amount invested[1 + Rate of interest]ⁿ

175,600 = 80,000[1+6%]ⁿ

175,600 = 80,000[1+0.06]ⁿ

175,600 = 80,000[1.06]ⁿ

Number of year = 13.492 year

Number of year = 13 year and 6 month approx.