So I know this is the formula,
A = Pe rt
To what final amount will an initial investment of $5,000 grow if the interest rate is 4% per year compounded continuously for 21 years? Write your answer rounded to the nearest cent.
im getting a number of 7.994 but it doesnt seem right.
In this problem you have all variables given (P, r and t)
In this example you would use ln:
How long will it take to double your investment if the interest would be 6% compounded continuousely?
A= P * e^rt
P = 1000
A = 2000
r = 0.06
2000 = 1000 * e^0.06*t
2 = e^0.06*t
ln2 = ln e^0.06*t --> ln e^x = x
ln2 = 0.06*t