Mia invested 52,000 in an account paying an interest rate of 3.1% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 62,100?

Solution

Mia invested 52, 000 in an account paying an interest rate of 3.1% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest tenth of a year, for the value of the account to reach 62, 100?

Solution

Time : 5.73

Solution steps

Translate the problem into an equation:

62100 = 52000 e^{0.031 t}

Solve for

t, 62100 = 52000 e^{0.031 t} : t = 5.73

Time : 5.73

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