document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=38076>Question 38076</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Having trouble with this one\r<BR>\n" );
document.write( "\n" );
document.write( "Suppose you deposit $20,000 for 3 years at a rate of 8%.\r<BR>\n" );
document.write( "\n" );
document.write( "If a bank compounds continuous, then the formula becomes simpler, that is A = Pe^rt where e is a constant and equals approximately 2.7183\r<BR>\n" );
document.write( "\n" );
document.write( "Now suppose, instead of knowing t, we know that the bank returned to us $25,000 with the bank compounding continuously. Using logarithms, find how long we left the money in the bank (find t). <BR>\n" );
document.write( "Answer:  <BR>\n" );
document.write( "Show work in this space   </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #23583 by </B><A HREF=/tutors/aboutme.mpl?userid=fractalier><B>fractalier(6550)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=fractalier><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/cgi-bin/show-face.mpl?user=fractalier><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=23583\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Okay, from the equation A = Pe^rt, let's plug in what we know.  Thus<BR>\n" );
document.write( "25000 = 20000(e^(.08t))<BR>\n" );
document.write( "First divide by 20000<BR>\n" );
document.write( "1.25 = e^(.08t)<BR>\n" );
document.write( "Now take the ln of both sides<BR>\n" );
document.write( "ln 1.25 = .08t<BR>\n" );
document.write( "Now divide by .08 and calculate<BR>\n" );
document.write( "t = (ln 1.25) / .08<BR>\n" );
document.write( "t = 2.79 years </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );