Question

If $ 2500 is invested in an account that pays interest compounded continuously, how long will it take to grow to $ 5000 at 4%? Round to the nearest tenth.

Answer 1

The equation for continuously compounded interest \[A = A_o e^{rt}\]where \(A_o\) is the initial amount, \(r\) is the interest rate in decimal form, and \(t\) is the time interest is collected for in years.

Answer 2

A = amt after t time ($5000)
P = initial principal ($2500)
r = interest rate in decimal form (.04)
t = time in yrs
Formula: A=p*e^(rt)