SOLUTION: Suppose that $2500 is invested in an account that pays interest compounded continuously. Find the amount of time that it would take for the account to grow to $3400 at a 4.75
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Question 1156472: Suppose that $2500 is invested in an account that pays interest compounded continuously. Find the amount of time that it would take for the account to grow to $3400 at a 4.75% interest rate.
Found 2 solutions by Boreal, ikleyn:
Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=Poe^rt with continuous compounding
3400=2500*e^(0.0475t)
3400/2500=1.36=e^.0475t
ln of both sides
0.3075=0.0475 t, the e goes away.
divide by 0.0475 both sides
t=6.47 years, rounding at the end.
Answer by ikleyn(52784) (Show Source): You can put this solution on YOUR website!
.
To see many other similar solved problems with detailed description, see the lesson
- Problems on continuously compound accounts
in this site.
After reading this lesson, you will tackle such problems on your own without asking for help from outside.
Also, you have this free of charge online textbook in ALGEBRA-I in this site
- ALGEBRA-I - YOUR ONLINE TEXTBOOK.
The referred lesson is the part of this online textbook under the topic "Logarithms".
Save the link to this online textbook together with its description
Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson
to your archive and use it when it is needed.
Happy learning (!)
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