In: Finance
How many years will it take $7,000 to grow to $11,300 if it is invested at 3.25% compounded continuously?
Using Continuous Compounding Formula,
11,300 = 7,000(e0.0325(t))
Using log,
0.0325(t) = log(11,300/7,000)/log(e)
t = 14.74 years