Question

If R35 000 accumulates to R48 320 at a continuous compounded rate of 8,6% per year, then the term under consideration is

Answer 1

$S=Pe^{ct}$

$48320=35000e^{0.086t}$

$\frac{48320}{35000}=e^{0.086t}$

$ln(48320/35000)=lne^{0.086t}=0.086t\space lne$

$\frac{ln(48320/35000)}{0.086}=t$

$t=3.74997$

So, the term under consideration is $3.75$