Answer:
(A) 3 years.
(B) True
(C) False
Explanation:
We will use compound interest formula to solve our given problems.
, where,
A = Final amount after t years,
P = Principal amount,
r = Annual interest rate in decimal form,
n = Number of times period is compounded per year,
t = Time in years.
(A)






Take natural log of both sides:







Therefore, it will take approximately 3 years for the investment to grow to a value of $57,478.01.
(B)






Since the final amount is approximately $100,000, therefore, the given statement is true.
(C)





Since the final amount is approximately $500,000, therefore, the given statement is false.