How long doesit take $5,000 to grow to $10,000 at 6% compounded continuously?

betterthennewzv

betterthennewzv

Answered question

2022-08-07

How long doesit take $5,000 to grow to $10,000 at 6% compounded continuously?

Answer & Explanation

Michelle Chavez

Michelle Chavez

Beginner2022-08-08Added 13 answers

use the formula A = P e r t
10 , 000 = 5 , 000 e .06 t
2 = e .06 t
ln 2 = .06 t
t = 11.56
Rose Graves

Rose Graves

Beginner2022-08-09Added 3 answers

Use the formula A = P e r t
where r= rate of interest: 6%= 6/100=0.06
time (t)=? in years
principle rate (P)= $5,000
balance after t years (A)= $10,000
A = P e r t
( $ 10 , 000 ) = ( $ 5 , 000 ) e ( 0.06 ) ( t )
Divide both sides of the equation by $5,000.
e 0.06 t = 2
Take the natural log to both sides of the equation.
( 0.06 t ) ( ln e ) = ln ( 2 )
Lne is defined as 1.
0.06 t = ln ( 2 )
Divide both sides of the equation by 0.06.
t = ( ln ( 2 ) ) ( 0.06 )
t=11.55245301 years
t 12 years (Answer)

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