Answer:
It will take about 10.5 years for the investment to reach $3,300.
Step-by-step explanation:
Continuous compound is given by:
[tex]\displaystyle A=Pe^{rt}[/tex]
Where P is the principal, e is Euler's number, r is the rate, and t is the time (in this case in years).
Since our principal is $2,000 at a rate of 4.75% or 0.0475, our equation is:
[tex]\displaystyle A=2000e^{0.0475t}[/tex]
We want to find the number of years it will take for our investment to reach $3,300. So, substitute 3300 for A and solve for t:
[tex]3300=2000e^{0.0475t}[/tex]
Divide both sides by 2000:
[tex]\displaystyle e^{0.0475t}=\frac{33}{20}[/tex]
We can take the natural log of both sides:
[tex]\displaystyle 0.0475t=\ln\left(\frac{33}{20}\right)[/tex]
Therefore:
[tex]\displaystyle t=\frac{1}{0.0475}\ln\left(\frac{33}{20}\right)\approx 10.54\text{ years}[/tex]
It will take about 10.5 years for the investment to reach $3,300.
