Answer:
20.7 years
Step-by-step explanation:
Use the "compound amount, compounding continuously" formula:
A = Pe^(r · t)
Here,
A = $2,500 = $1,450e^(0.06 · t)
Divide both sides by $1,450: 1.724 = e^(0.06 · t)
Taking the natural log of both sides, we obtain:
ln 1.724 = (0.06 · t).
Finally, we divide both sides by 0.06, obtaining:
ln 1.724
------------ = t = 20.7
0.06
The Investment will reach a value of $2.500 in approximately 20.7 years.
