Question

This Question: 1 pt 17 of 17 (1 complete) This Quiz: 17 pts possible How many years will it take for an initial investment of $20,000 to grow to $50,000? Assumo a rate of interest of 2% compounded continuously it will take about years for the investment to grow to $50,000. (Round to two decimal places as needed.)

Answer 1

Date How many years will it take for an initial investment of $20,000 to grow to $50,000 Assume rate of interest of 21-compounded continously when compounded continously A = Ao ert Where to is initial value, A final values V = rate of interest and to time. tere, v= 21 or 0.02 t = to find A = 50000, Ao = 20000 putting values in A= Ao ert oozt 50000 - 20000e = 50000 - 2.5 7 2000 0 0.02t eo.02t taking in both sides In leo.o2t) = ln (25) Incea) = a klu /2.5) = 0.9163 0.02t = 0.9163 t = 45.81453 t-45-81 It will take 45.8l years for $20006 to $500.0 with 21 con limously compounded