Question

Suppose $200 is invested at 6% annual interest compounded continuously. When will the investment be worth $800?

Answer 1

$A=Pe^{rt}$

A=800

P=200

r=0.06

t-?

$800=200e^{0.06t}$

$e^{0.06t}=4$

0.06t=1.386

t=1.386/0.06=23.1 years