Respuesta :
The time period the amount will take to attain the given sum will be $2 years and 8 months using compound interest formula.
Given information:
Principal amount (P)= $4,500
Amount = $13,500
Rate of interest (r) = 7% = 0.07
Time period using formula of compound interest, which is compounded continuously,
Amount = Pe^rt
13,500 = 4,500e^0.07t
e^0.07t= 13,500/4500 =3
t (time period) = 2.8 years or 2 years and 8months
The interest earned on savings that is computed using both the original principal and the accrued interest over time is known as compound interest. The interest earned on savings that's also computed considering both original principal and the interest accrued over time is known as compound interest. The yearly interest rate is increased to the amount of compounded periods minus one, and the starting principal is multiplied by these two factors. The obtained value is subsequently deducted from the loan's entire original amount.
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