An art collector invested $40,000 in a trust fund with a 5.9% interest rate compounded continuously to save for future art acquisitions. How long will it take for the trust fund to grow to $80,000?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. An art collector invested $40,000 in a trust fund with a 5.9% interest rate compounded continuously to save for future art acquisitions. How long will it take for the trust fund to grow to $80,000?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 given values: A = $80,000 P = $40,000 r = 5.9\% = 0.059
Use formula: Use the formula A=Pert: 80,000=40,000imese0.059t
Divide sides: Divide both sides by 40,000: 2=e0.059t
Take ln: Take the natural logarithm (ln) of both sides: ln(2)=ln(e0.059t)
Simplify: Simplify using the property of logarithms ln(ex)=x: ln(2)=0.059t