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If $500 is put into a savings account at 9% interest compounded continuously, how much will it be worth at the end of 3 years? How many years will it take to double in value?

If 500 is put into a savings account at 9 interest compounded continuously how much will it be worth at the end of 3 years How many years will it take to double class=

Respuesta :

amna04352

Answer:

$654.98

Around 7.7 years

Step-by-step explanation:

Value = P × e^(rt)

= 500 × e^(0.09×3)

= 500 × e^(0.27)

= 654.9822254

Double: 500 × 2 = 1000

1000 = 500 × e^(0.09t)

e^(0.09t) = 2

Use ln both sides

0.09t × lne = ln2

t = ln2 ÷ 0.09

t = 7.70163543

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