Investment A is worth \ $1{,}000 at$ t=0 $and grows continuously at$ 6\%$ per year. Investm…

Mathematics

Problem

Investment A is worth \

1{,}000 at

t=0

and grows continuously at

6\%

per year. Investment B is worth

1{,}500 at

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}

21.3\text{ yr}

20.3\text{ yr}

45.5\text{ yr}