SOLUTION: A student deposits $6,000 in a savings account with x% continuously compounded interest. How many years must he wait until the balance has doubled?
I can insert any interest rat
Algebra.Com
Question 623603: A student deposits $6,000 in a savings account with x% continuously compounded interest. How many years must he wait until the balance has doubled?
I can insert any interest rate for x I would like to use. Thanks!!!
Answer by lwsshak3(11628) (Show Source): You can put this solution on YOUR website!
A student deposits $6,000 in a savings account with x% continuously compounded interest. How many years must he wait until the balance has doubled?
**
Formula for continuous compounding: A=Pe^xt, P=initial investment, x=annual interest rate, A=amount after t years.
For given problem:
A/P=2=e^xt
ln2=xtlne
lne=1
ln2=xt
t=ln2/x (years for any initial investment to double at x interest rate)
RELATED QUESTIONS
A woman deposits $50,000 in a savings account with 4% continuously compounded interest.... (answered by Paul)
A woman deposits $50,000 in a savings account with 4% continuously compounded interest.... (answered by stanbon)
A woman deposits $50,000 in a savings account with 4% continuously compounded interest.... (answered by orca)
A woman deposits $50,000 in a savings account with 4% continuously compounded interest.... (answered by solver91311)
A woman deposits $50,000 in a savings account with 4% continuously compounded interest.... (answered by nyc_function)
A student deposits $4,000 into a savings account with 7% continuously compounding... (answered by stanbon,rfer)
I am so lost on how to solve this problem....
A woman deposits $50,000 in a... (answered by stanbon)
This is a logarithmic equation not really understanding this.
A woman deposits 50,000... (answered by stanbon,Edwin McCravy)
A woman deposits $50,000 in a savings account with 4% continuously compounded... (answered by Mathtut)