How long will it take an investment of 45000 to become 100,000 if it earns 4.65% compounded continuously?

Question

I got this question wrong on my test and just wanted to know the correct answer!!!!!!

Answer 1

Hi Alfonzo,

Continuous compound interest formula is

A = Pe^rt

100000 = 45000e^(0.0465t)

2.2 = e^(0.0465t) (take natural log of both sides)

ln (2.2) = ln (e^(0.0465t)

0.8 = 0.0465t

t = 17.2 years