document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=145702>Question 145702</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help me  When interest is compounded continuously, the balance in an account after t years is given by \r<BR>\n" );
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document.write( "A = Pert,\r<BR>\n" );
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document.write( "Where P is the initial investment and r is the interest rate. \r<BR>\n" );
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document.write( "Use the formula given to solve the following:\r<BR>\n" );
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document.write( "a)       Maya has deposited $600 in an account that pays 5.64% interest, compounded continuously. How long will it take for her money to double? \r<BR>\n" );
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document.write( "b)      Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 yr? After 2 yrs? \r<BR>\n" );
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document.write( "Please help me figure this problem out. </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #106322 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=106322\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> When interest is compounded continuously, the balance in an account after t years is given by <BR>\n" );
document.write( "A = Pert, where P is the initial investment and r is the interest rate.<BR>\n" );
document.write( "------------------------- <BR>\n" );
document.write( "Use the formula given to solve the following: <BR>\n" );
document.write( "a) Maya has deposited $600 in an account that pays 5.64% interest, compounded continuously. How long will it take for her money to double? <BR>\n" );
document.write( "2*600 = 600e^(0.0564t)<BR>\n" );
document.write( "2 = e^(0.0564t)<BR>\n" );
document.write( "Take the natural log of both sides to get:<BR>\n" );
document.write( "0.0564t = ln2<BR>\n" );
document.write( "t = ln2/0.0564 <BR>\n" );
document.write( "t = 12.2898..years<BR>\n" );
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document.write( "b) Suppose that $2000 is invested at a rate of 6% per year compounded continuously. What is the balance after 1 yr? After 2 yrs? <BR>\n" );
document.write( "A(1) = 2000e^(0.06*1) = $2123.67<BR>\n" );
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document.write( "A(2) = 2000e^(0.06*2) = $2254.99<BR>\n" );
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document.write( "Cheers,<BR>\n" );
document.write( "Stan H.\r<BR>\n" );
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