How long will it take to earn $7000 on a $3500 investment at a rate of 7.8% compounding continuously?

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Answer 1 · 2016-06-12T12:56:24

#n = 9.229# years

As it does not state what the period of compounding refers to, I will assume it is per year.

For Compound Interest"
#Amount = P(1 + r)^n#, where #n# is the time in years.

#7000 = 3500(1 + 0.078)^n#

#2 = (1.078)^n " divide by 3500"#

Because #n# is an exponent, we need to use logs.

#log2 = n log1.078" power law as well"#

#log2/log1.078# = #n#

#n = 9.229 years " calculator"#