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23 July, 19:43

How long will it take a $800 investment to be worth $900 if it is continuously compounded at 11% per year?

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  1. 23 July, 22:33
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    The formula is

    A=p e^rt

    A future value 900

    P present value 800

    E constant

    R interest rate 0.11

    T time?

    We need to solve for t

    T=[log (A/p) : log (e) ]:r

    T = (log (900:800) : log (e)) : 0.11

    T=1.07 years round your answer to get 1 year
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