Kimka046
Answered

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A retirement account was opened with a $900 deposit. If the account earns 4.25% interest compounded continuously and has no other deposits or withdrawals, how long will it take the value to double?​

Sagot :

abidemiokin

It will take 16.66years long for the money to double

The formula for calculating the compound amount is expressed as:

A = P(1+r)^t

  • A is the amount after t years  = 2(900) = $1800
  • P is the amount invested = $900
  • r is the rate in decimal  = 4.25% = 0.0425

Substitute into the formula to have:

1800 = 900(1+0.0425)^t

2 =(1+0.0425)^t

2 = 1.0425^t

ln2 = tln1.0425

t =  ln2/ln1.0425

t = 0.6931/0.0416

t = 16.66years

This shows that it will take 16.66years long for the money to double

Learn more on compound interest here: https://brainly.com/question/18483293

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