SOLUTION: If 5000 dollars is invested in a bank account at an interest rate of 4 per cent per year, compounded continuously. How many years will it take for your balance to reach 30000 doll
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Question 429743: If 5000 dollars is invested in a bank account at an interest rate of 4 per cent per year, compounded continuously. How many years will it take for your balance to reach 30000 dollars?
Found 2 solutions by stanbon, solver91311:
Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
If 5000 dollars is invested in a bank account at an interest rate of 4 per cent per year, compounded continuously. How many years will it take for your balance to reach 30000 dollars?
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A(t) = Pe^(rt)
30000 = 5000*e^(0.04t)
6 = 3^(0.04t)
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Use natural logs to find "t":
0.04t*ln(3) = ln(6)
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0.04t = ln(6)/ln(3)
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0.04t = 1.0631
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t = 40.8 years
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Cheers,
Stan H.
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Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!
A very long time.
Substitute values
Take the natural log of both sides
\ =\ \ln(6))
Use the laws of logs and the fact that \ =\ 1)
)
}{0.04}\ \approx\ 44.8)
years
John
My calculator said it, I believe it, that settles it
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