SOLUTION: if $350 is deposited in an account paying 2% annual interest, compunded continuously, how long will it take for the account to increase to $1500? A=Pe^rt 1500=350e^.02(t)

You can put this solution on YOUR website!
To Solve:
You must first isolate the e^x component -- so divide both sides by 350:

Simplifying gives you:

Next, take the natural log (ln) of both sides:

Now, use the power rule to simplify the right side:

Since , you're left with:

Divide both sides by .02 to get:

So t = 72.76 years


Hope this helps.


~ Joe

You can put this solution on YOUR website!
Start with the given equation.


Plug in A=1500, P=350, and r=0.02


Divide both sides by 350.


Divide


Take the natural log of both sides (to eliminate the base "e")


Evaluate the natural log of 4.2857


Divide both sides by 0.02


Divide


Rearrange the equation


So it will take approximately 72.765 years for $350 to grow into $1,500.