Question

If $ 2500 is invested in an account that pays interest compounded continuously, how long will it take to grow to $ 5000 at 3%? Round to the nearest tenth. Show all work.

Answer 1

3% per year?

Answer 2

if so, then 2500*1.03^n=5000
=> 1.03^n = 2
=> n*log1.03=log2
=> n= log2/log1.03 = 23.4 months.

Answer 3

previously was for per month...
if per year: 23.4 yr * 12 = 281 months.

Answer 4

Thank you.