An initial investment of $200 is now valued at $350. The annual interest rate is 8% compounded continuously. The equation

2000007 350 represents the situation, where t is the number of years the money has been invested. About how long has the

money been invested? Use a calculator and round your answer to the nearest whole number

5 years

7 years

19 years

22 years

Question

Elsie Mcintyre

Mathematics

27 December, 13:37

An initial investment of $200 is now valued at $350. The annual interest rate is 8% compounded continuously. The equation

2000007 350 represents the situation, where t is the number of years the money has been invested. About how long has the

money been invested? Use a calculator and round your answer to the nearest whole number

5 years

7 years

19 years

22 years

+5

Answers (1)

Know the Answer?

Ansley Arellano · Answer 1

7 years

Step-by-step explanation:

We expect your equation is ...

200e^ (.08t) = 350

Dividing by 200 and taking the natural log, we have ...

0.08t = ln (1.75)

t = ln (1.75) /.08 ≈ 7.0

The money has been invested 7 years.