Lucy invested $6,000 into an account that earns 6% interest compounded continuously. Approximately how long will it take for Lucy's investment to be valued at $25,000?

1 Answer
Kevin L.
Feb 27, 2017

23.79 years

Explanation:

Remember the formula #A = Pe^(rt)#. A is amount; P is starting amount; e is the constant; r is the rate of interest; t is time.

#$25,000 = $6,000 times e^(0.06t)#
#25/6 = e^(0.06t)#
#ln(25/6) = 0.06t#
#t = ln(25/6)/0.06#
#t = 23.79 years

Related questions
Impact of this question
3297 views around the world
You can reuse this answer
Creative Commons License