Serenity invested 2,400 in an account paying an interest rate of 3.4% 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 2,930?

Solution

Serenity invested 2, 400 in an account paying an interest rate of 3.4% 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 2, 930?

Solution

Time : 5.87

Solution steps

Translate the problem into an equation:

2930 = 2400 e^{0.034 t}

Solve for

t, 2930 = 2400 e^{0.034 t} : t = 5.87

Time : 5.87

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