JJayChanelleidn
Answered

IDNLearn.com makes it easy to get reliable answers from knowledgeable individuals. Our platform offers reliable and detailed answers, ensuring you have the information you need.

The formula for continuously compounded interest on a principal investment Pat a given interest rater
over time tin years is given by A = Per? You have deposited $12,000 in an account that pays 4.15%
interest, compounded continuously. How long will it take for your initial investment to grow six times its
original worth? Round your answer to the nearest tenth.

Sagot :

Answer:

43.2 years

Step-by-step explanation:

The formula for continuously compounded interest on a principal investment Pat a given interest rater

over time tin years is given by A = Pe^rt

P = Initial amount compounded = $12000

A = Amount compounded continuously after t years = six times it's original worth

= 6 × $12,000 = $72000

r = Interest rate = 4.15%

t = time in years = ?

Making t the subject of the formula

t = ln(A/P) / r

First, convert R percent to r a decimal

r = R/100

r = 4.15%/100

r = 0.0415 per year,

Then, solve our equation for t

t = ln(A/P) / r

t = ln(72,000.00/12,000.00) / 0.0415

t = 43.175 years

Approximately t = 43.2 years

The time required to get a total amount of $ 72,000.00 from compound interest on a principal of $ 12,000.00 at an interest rate of 4.15% per year and compounded continuously is 43.2years.

We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. Your questions find clarity at IDNLearn.com. Thanks for stopping by, and come back for more dependable solutions.