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Select the correct answer.
How many years (approx.) will it take $6,000 to amount to $8,000 if it is invested at an annual rate of 9.0% compounded continuously?

Select the correct answer How many years approx will it take 6000 to amount to 8000 if it is invested at an annual rate of 90 compounded continuously class=

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Answer:

B. 3

Step-by-step explanation:

Compound interest means it builds up over time, and is based off the total from each year, not overall.

9% interest means it increases by x0.09 each year

Add 1 to this, to account for the start amount (100%)

so 6000x1.09^(y) ≈ 8000

y being the number of years taken

I used the ≈ than symbol instead of equals because it most likely will not be exactly 8000, and therefore should be as close as it can be to 8000.

I then substituted in the number of years given to get outcomes of:

A. 43547

B. 77770

C. 13031

D. 7128

E. 223905

B is therefore closest, meaning it is the answer.

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