Maya invested 5,000 in an account paying an interest rate of 3.9% 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 6,880?

Solution

Maya invested 5, 000 in an account paying an interest rate of 3.9% 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 6, 880?

Solution

Time : 8.18

Solution steps

Translate the problem into an equation:

6880 = 5000 e^{0.039 t}

Solve for

t, 6880 = 5000 e^{0.039 t} : t = 8.18

Time : 8.18

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