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 o f $1700 to grow to $1 million at 4% compounded continuously. The amount of time it would take to grow the deposit to $1 million is years days

Solution

Solution:

Principal value PV = $1700

Future Value = $ 1000000

Rate of Interest r = 4% = 0.04

time taken to reach amount 1 million let t

Using formula FV = PV e^rt

1000000 = 1700 e^0.04t

  e^0.04t = (10000/17)

0.04t = 6.377

t = 159.43

t = 159 year 157 days

Answer: The amount of time it would take to grow the deposit to $1 million is 159 years 157 days