A technology startup received a seed investment of $50,000 and wants to grow this amount by investing it in a high-yield account with a 7% interest rate compounded continuously. How many years will it take for the investment to reach $100,000?Use the formula A=Pert, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.Round your answer to the nearest tenth.
Q. A technology startup received a seed investment of $50,000 and wants to grow this amount by investing it in a high-yield account with a 7% interest rate compounded continuously. How many years will it take for the investment to reach $100,000?Use the formula A=Pert, where A is the balance (final amount), P is the principal (starting amount), e is the base of natural logarithms (≈2.71828), r is the interest rate expressed as a decimal, and t is the time in years.Round your answer to the nearest tenth.
Identify values: Identify the values for P, A, r, and t. P=50,000A=100,000r=0.07t=?
Use formula and solve: Use the formula A=Pert and solve for t. 100,000=50,000imese0.07t
Divide both sides: Divide both sides by 50,000. 2=e0.07t
Take natural logarithm: Take the natural logarithm (\ln) of both sides to solve for t. ln(2)=0.07t
Divide by 0.07: Divide both sides by 0.07.t=ln(2)/0.07
Calculate value of t: Calculate the value of t. t≈0.070.693147t≈9.9021
Round to nearest tenth: Round to the nearest tenth. t≈9.9 years
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