How long will it take for $ 1 , 000 to be worth $ 3 , 500 at 9 % interest, compounded continuously? Round your answer to the nearest hundredth of a year.

Answer 1

A = Pe^rt

3500 = 1000 e^0.09t

3.5 = e^0.09t

Take the natural log (ln) of both sides to get the t out of the exponent then solve for t using your calculator. Round to the nearest hundredth as instructed, Units are years.