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Posted by on Tuesday, June 23, 2009 at 4:13pm.

One thousand dollars is deposited in a savings account at 6% interest compounded continously.
How many years are required for the balance in the account to reach $2500

  • math - , Tuesday, June 23, 2009 at 5:57pm

    (e=2.71828 18284 59045 23536…)

    PERIODICALLY: A=P(1+r/n)^(nt)
    P = principal amount (the initial amount you borrow or deposit)
    r = annual rate of interest (as a decimal)
    t = number of years the amount is deposited or borrowed for.
    A = amount of money accumulated after n years, including interest.
    n = number of times the interest is compounded per year

    Since it's compounded continuously, use Pert (The first formula).

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