Question

Alright, this is a bonus question on my homework. I think I did it wrong...

How long will it take for an investment of $1000 to grow to $1750 if interest is compounded continuously at a rate of 8%? Round to the nearest tenth.

A=Pe^rt

$1750=$1083.38
divided

ans= 1.62

Answer 1

yes, you did it wrong. You left out the t part:

1000 e^.08t = 1750
e^.08t = 1.75
.08t = log(1.75)
t = log(1.75)/.08 = 6.99
or, 7 years.

surely you didn't think that the money wold almost double in a year and a half at 8%!

Answer 2

I did indeed. Thank you again for helping me out! Have a great night!