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If you put $5,000 in an investment that earns 8% interest compounded continuously, how many years, rounded to the second decimal, will take it until you have $8,303.00?

Sagot :

Answer:

6.34 years

Step-by-step explanation:

Given data

Principal P=$5,000

Rate r= 8%

Final amount A=  $8,303.00

The expression for the time will be

t= ln(A/P)/r

substitute

t= ln(8,303.00/5000)/0.08

t= ln(1.6606)/0.08

t= 0.507/0.08

t= 6.3375

Hence the time is about 6.34 years

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