# 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) 4.1B) 5.0C) 8.7D) 20.1 E) 23.0

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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

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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...

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