How many years will it take for an initial investment of $10,000 to grow to $35,000, assuming a rate of interest of 17% compounded continuously?

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Answer 1 · 2016-03-11T07:03:08

#~= 7.37 years#

An initial investment (P) compounded continuously with a rate of interest (r) in time (t) will grow to amount (Q) is given by:

#Q = P e^(rt)#

In this example: #P = $10,000, Q = $35,000, r = 17% p.a.#

Using the formula above:
#35000 = 10000 e^(17/100 t)#

#e^(0.17t) = 35000/10000#

#0.17t = Ln(3.5)#

#t ~= 1.25276/0.17#

#t ~= 7.37 years#