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.

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.

anonymous · Answer

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.

anonymous · Answer

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)