Question

An initial investment of $200 is now valued at $350. The annual interest rate is 8% compounded continuously. The equation mc022-1.jpg represents the situation, where t is the number of years the money has been invested. About how long has the money been invested? Use a calculator and round your answer to the nearest whole number.

Answer 1

Its 7 years

Explanation:

Answer 2

7 years

Explanation:

An initial investment of $200 is now valued at $350.

The annual interest rate is 8% compounded continuously.

Formula:

`A=Pe^(rt)`

Where,

A is amount, A=350

P is principle, P=200

R is rate of interest, r=0.08

t is time, t=?

Substitute the value into formula

`350=200e^(0.08\cdot t)`

`e^(0.8t)=1.75`

Taking ln both sides

`0.08t = ln(1.75)`

`t=6.99\approx 7`

Hence, 7 years ago money was invested.