How many years will it take for an initial investment
of$40,000 to grow to $60,000? assume a rate of interest of
10%compounded continuously.

It will take 4.05 years for an initial investment  of $40,000 to grow to $60,000.

Step-by-step explanation:

The exponential growth equation (Compounded continuously) is given by :-

              (1)

, where r = rate of growth (in decimal)

t= time

P= initial amount.

As per given , we have

P= $40,000

A = $60,000

r = 10% =0.10

Put values in (1) , we get

  [Divide both sides by 40000]

Taking natural log on both sides , we get

Hence, it will take 4.05 years for an initial investment  of $40,000 to grow to $60,000.

step-by-step explanation:

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