Investment A is worth 1 , 000 t=0 6 % at and grows continuously at per year

MATHEMATICS · Single correct · A Level · Mathematics · Exponentials and logarithms · Exponentials and logarithms

Problem

Investment A is worth

\$1{,}000

t=0

and grows continuously at

6\%

per year. Investment B is worth

\$1{,}500

t=0

and grows continuously at

4\%

per year. Approximately how many years will it take for the two investments to have the same value? (a)

8.8\text{ yr}

(b)

21.3\text{ yr}

(c)

20.3\text{ yr}

(d)

45.5\text{ yr}