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.

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.

anonymous · Answer

y = P e^(rt)
P would be the amount of $ you first put in, r would be the rate (in your case, it would be 0.03), and t would be the time. 

Your set up should look like this:
5000 = 2500e^(0.03t)
Divide both sides by 2500
2 = e^(0.03t)
Natural log (ln) both sides
Ln 2 = Lne^(0.03t)
Ln 2= 0.03t
Divide both sides by 0.03

anonymous · Answer

Thank you so much~