If Emery has $1400 to invest at 11% per year compounded monthly, how long will it be before he has $2300. If the compounding is continuous, how long will it be?

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Answer 1 · 2018-04-10T14:06:11

Emery will need #55# months.

Using the compound interest formula: #A=P(1+r)^n#

#2300=1400(1+0.11/12)^(n)#

#23/14=(1+0.11/12)^(n)# divide both sides by #1400#

#log(23/14)=log(1+0.11/12)^(n)# take #log# of both sides

#log(23/14)=nlog(1+0.11/12)# #log# law: #logx^n=nlogx#

#log(23/14)/log(1+0.11/12)=n# divide both sides by #log(1+0.11/12)#

#napprox54.4#