Question

John wants to invest $3000 in a savings certificate that bears an interest rate of 4% per year, compounded continuously. How long a period should he choose in order to save an amount of $5000?

Answer 1

ahh 1 sec
getting formula

Answer 2

I hate money problems, because I can never remember the formula :P

Answer 3

I = PRT

Answer 4

wait thats basic =(

Answer 5

That's what I thought... compounding interest hurts my brain.

Answer 6

M = P( 1 + i )n

M is the final amount including the principal.

P is the principal amount.

i is the rate of interest per year.

n is the number of years invested

Answer 7

compound is 4 times per year

Answer 8

N is what I'm trying to find then?

Answer 9

5000=3000(1+.04)n

Answer 10

right?

Answer 11

n=1.602