SOLUTION: if $500 is deposited in an account paying 8.7% annual interest, compounded continuously, how long will it take the account to increase to $800? (round the answer to one decimal pla
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Question 1187381: if $500 is deposited in an account paying 8.7% annual interest, compounded continuously, how long will it take the account to increase to $800? (round the answer to one decimal place) Found 3 solutions by Boreal, MathTherapy, greenestamps:Answer by Boreal(15235) (Show Source):
You can put this solution on YOUR website! P=Poe^rt for continuous compounding.
800+500*e(0.057*t), where t is number of years
1.6=e^(0.057t) dividing by 500.
ln both sides
0.4700=0.057t
t=8.25 years or 8.3 years
check roughly with rule of 70
70/8.7=t in years which is 8.05. This is reasonably close.
You can put this solution on YOUR website!
if $500 is deposited in an account paying 8.7% annual interest, compounded continuously, how long will it take the account to increase to $800? (round the answer to one decimal place)
Remember that the purpose of this forum is to help students learn how to solve problems.
Your response to this question -- simply stating that the other tutor's answer is wrong and showing the correct answer with no work -- is of no use to the student.
Yes, in many cases a response from a tutor is absurd; but in this case the first tutor simply used the right method with the wrong number.
A useful response for the student would say that and perhaps show the solution using the right number. = 5.40 (years) to the nearest hundredth
