Question

How long (in years) would $11,000 have to be invested at 6% compounded continuously to earn $1,402.47 interest?. It would have to be invested for years. (Round to 2 decimal places.)

Answer 1

Matana, this is the solution!

Principal = 11,000

Interest rate = 6% (0.06) compounded continuously

Interest amount = $ 1,402.47

Future Value = 12,402.47 (Principal + Interest amount)

t = ?

Let's recall that:

t = log (Future Value/Principal)/Interest rate

t = (log 12,40247/11,000)/0.06

t = 2 years