Aubrey invested 61,000 in an account paying an interest rate of 1.9% 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 73,600?

Solution

Aubrey invested 61, 000 in an account paying an interest rate of 1.9% 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 73, 600?

Solution

Time : 9.88

Solution steps

Translate the problem into an equation:

73600 = 61000 e^{0.019 t}

Solve for

t, 73600 = 61000 e^{0.019 t} : t = 9.88

Time : 9.88

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