Having trouble with this problem.
How long will it take a $700 investment to be worth $800 if it is continuously compounded at 10% per year? Have to round it to two decimal places.

I use the formula A(t) = Pe^r*t correct?

Question

Having trouble with this problem.  
How long will it take a $700 investment to be worth $800 if it is continuously compounded at 10% per year? Have to round it to two decimal places.

I use the formula A(t) = Pe^r*t  correct?

riley · Answer

I'm not sure what to plug in for the time . . . it just says one year, so I tried using 1, but that didn't work. >_<

anonymous · Answer

$$800=700e ^{0.1t}$$
$$e ^{0.1t}8/7$$
$$0.1t=\ln(8/7)$$

anonymous · Answer

$$t=10*\ln(8/7)$$
$$t=1.34 years$$

riley · Answer

oh I see what you did you set it equal to 800 to solve for t right!!!

riley · Answer

amg I totally understand that

riley · Answer

thank you very much for the help

anonymous · Answer

thats how you do it son, you just got schooled

anonymous · Answer

jk