If 7000 dollars is invested in a bank account at an interest rate of 5 per cent per year, compounded continuously. How many years will it take for your balance to reach 20000 dollars?
2007-10-05 14:34:56 · 3 answers · asked by RedSparkle 1 in Science & Mathematics ➔ Mathematics
Hi,
The formula is:
A = Pe^(rt) (Where A is the future value, P is the initial amount (principal), r is the interest rate expressed as a decimal, and t is the time in years.
So, let’s solve for t.
A/P = e^(rt)
ln (A/P) = rt
t= ln(A/P)/r
= ln (20000/7000)/.05 (You’ll need a calculator to do this arithmetic.)
= 20.996 or rounded off 21 years.
FE
2007-10-05 14:57:26 · answer #1 · answered by formeng 6 · 0⤊ 0⤋
the part and percent is given.. all u have to do is find the whole:
whole= (part * 100) divided by the percent.. solve it urself
..oooorrr u can do proportions
2007-10-05 21:39:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
it will reach in the 22nd year
2007-10-05 22:32:32 · answer #3 · answered by van v 3 · 0⤊ 0⤋