Emma invested 19,000 in an account paying an interest rate of 4.2% compounded continuously. Assuming no deposits or withdrawals are made, how long would it take, to the nearest year, for the value of the account to reach 40,000?

Solución

E mma in v es t e d 19, 000 in an a cco u n t p a y in g an in t eres t r a t e o f 4.2% co m p o u n d e d co n t in u o u s l y . A ss u min g n o d e p os i t s or w i t h d r a w a l s a re ma d e, h o w l o n g w o u l d i t t ak e, t o t h e n e a res t ye a r, f or t h e v a l u e o f t h e a cco u n t t o re a c h 40, 000 ?

Time : 17.72

Pasos de solución

Translate the problem into an equation:

40000 = 19000 e^{0.042 t}

Resolver para

t, 40000 = 19000 e^{0.042 t} : t = 17.72

Time : 17.72