Owen invested 63,000 in an account paying an interest rate of 6.5% 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 159,600?

Solution

Owen invested 63, 000 in an account paying an interest rate of 6.5% 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 159, 600?

Solution

Time : 14.3

Solution steps

Translate the problem into an equation:

159600 = 63000 e^{0.065 t}

Solve for

t, 159600 = 63000 e^{0.065 t} : t = 14.3

Time : 14.3

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