Calculus - Compound Interest
posted by Cal .
Recently, a certain bank offered a 10-year CD that earns 8.93% compounded continuously.
a) If $20,000 is invested in this CD, how much will it be worth in 10 years?
Ans: I used the formula A = Pe^(rt) to get the answer $48,848.92
b)How long will it take for the account to be worth $50,000?
I just need help in solving part b) thank you!
20 e^(.0893t) = 50
e^.0893t = 2.5
.0893t = ln(2.5)
t = ln(2.5)/.0893 = 10.26