Question
You invest $1,000 in an account with continously compounding interest of 4% a year. When will your account be worth $1,500 dollars?
Answers
Reiny
1000 e^(.04t) = 1500
e^(.04t) = 1.5
ln (e^(.04t)) = ln 1.5
.04t = ln 1.5
t = ln1.5 / .04 = appr 10.1 years
e^(.04t) = 1.5
ln (e^(.04t)) = ln 1.5
.04t = ln 1.5
t = ln1.5 / .04 = appr 10.1 years