Asked Dec 28, 2019

The formula A = Pe0.08tgives the amount A that a savings account will be worth after anitial investment P is compounded continusously at an annual rate of 8 percent for t years. Under these conditions, how many years will it take an initial investment of $1,000 to be worth approximately $5,000. 

A) 4.1

B) 5.0

C) 8.7

D) 20.1 

E) 23.0 


Expert Answer

Step 1

Amount for continuous compound interest:

If P amount of money is invested for t years at r% rate of interest which compounded con...

Advanced Math homework question answer, step 1, image 1

Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in


Advanced Math