Question

Suppose you invest $2000 at an annual interest of 5.5% compounded continuously.

a. How much will you have in the account in 10 years?
b. How long will it take for the account to reach $5000?

Answer 1

`2000 * {1.055}^(10) = 3416.29`

`5000 / 2000 = 2.5`

`log_(1.055)(2.5) = 17.11`