Solve the problem.
-If Emery has $2000 to invest at 8% per year compounded monthly, how long will it be before he has $3300? If the compounding is continuous, how long will it be? (Round your answers to three decimal places.)
A) 6.281 yrs, 6.26 yrs
B) 0.542 yrs, 0.522 yrs
C) 78.476 yrs, 6.51 yrs
D) 0.082 yrs, 0.626 yrs

Question

Quizplus · Accepted Answer

For monthly compounding, use the formula $A = P(1 + \frac{r}{n})^{nt}$, where $A = 3300$, $P = 2000$, $r = 0.08$, and $n = 12$. Solve for $t$. For continuous compounding, use $A = Pe^{rt}$ and solve for $t$.

Solve the Problem. -If Emery Has $2000 to Invest at 8% Per Year