Find the amount of time to the nearest day it would take a d

Find the amount of time to the nearest day it would take a deposit of $2400 to grow to $1 million at 12% compounded continuously. The amount of time it would take to grow the deposit to $1 million is years days

Solution

Solution:

Principal value PV = $2400

Future Value = $ 1000000

Rate of Interest r = 12% = 0.12

time taken to reach amount 1 million let t

Using formula FV = PV e^rt

1000000 = 2400 e^0.12t

  e^0.12t = (10000/24)

0.12t = 6.032

t = 50.27

t = 50 year 98 days

Answer: The amount of time it would take to grow the deposit to $1 million is 50 years 98 days