SOLUTION: Suppose you invest $130 at 4% compounded continuously.
a. Write an exponential function to model the amount in your investment account.
b. Explain what each value in the function
Question 468306: Suppose you invest $130 at 4% compounded continuously.
a. Write an exponential function to model the amount in your investment account.
b. Explain what each value in the function model represents.
c. In how many years will the total reach $600? Show your work. Found 2 solutions by ewatrrr, Gogonati:Answer by ewatrrr(24785) (Show Source): You can put this solution on YOUR website!
Hi,
invest $130 at 4% compounded continuously
A = Pe^(rt) where P is the amount Invested, r the rate, t the number of years
$600 = $130 e^.04t
ln(600/130) = .04t
1.5294/.04 = t
38.2349yrs = t
Answer by Gogonati(855) (Show Source): You can put this solution on YOUR website! The compounding continuously formula is: , where P is the
initial investment, r is the interest rate, and t the amount of time in years the
investment is held. To find in how many years the initial investment of $130 will
reach $600, we substitute in our formula A(t)=600, and get:
, solving this equation we get:<=>
, taking the natural logarithms of both sides, we have
, and final or t=38 years.