Olivia invested 500 in an account paying an interest rate of 2.4% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 650?

Solution

Solution

Time : 10.93

Solution steps

Translate the problem into an equation:

650 = 500 e^{0.024 t}

Solve for

t, 650 = 500 e^{0.024 t} : t = 10.93

Time : 10.93

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