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Jayden invested 22,000 in an account paying an interest rate of 2.5% 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 30,400?

Solution

Jayden invested 22, 000 in an account paying an interest rate of 2.5% 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 30, 400?

Solution

Time : 12.94

Solution steps

Translate the problem into an equation:

30400 = 22000 e^{0.025 t}

Solve for

t, 30400 = 22000 e^{0.025 t} : t = 12.94

Time : 12.94

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