Solve the problem.
-If $3500 is invested in an account that pays interest compounded continuously, how long will it take to grow to $7900 at 5.5%? Round to the nearest tenth.
A) 12.6 years
B) 14.8 years
C) 6.0 years
D) 15.3 years

Question

Quizplus · Accepted Answer

To solve this, use the formula for continuous compounding: $ A = Pe^{rt} $. Here, $ A = 7900 $, $ P = 3500 $, $ r = 0.055 $. Solving for $ t $, we get $ t = \frac{\ln(\frac{7900}{3500})}{0.055} \approx 14.8 $ years.

Solve the Problem. -If $3500 Is Invested in an Account That Pays Interest