SOLUTION: Use the continuous compound interest formula to find the indicated value. A=​94,000​ P=​$81,577​ r=6.3​% t=? in years, round 2 places

Algebra ->  Probability-and-statistics -> SOLUTION: Use the continuous compound interest formula to find the indicated value. A=​94,000​ P=​$81,577​ r=6.3​% t=? in years, round 2 places      Log On


   

Question 1091602: Use the continuous compound interest formula to find the indicated value.
A=​94,000​ P=​$81,577​ r=6.3​% t=?
in years, round 2 places as needed
Answer by math_helper(2461) About Me  (Show Source):
You can put this solution on YOUR website!
+F+=+P+e%5E%28rt%29+
F = Future value (also corresponds to A in this problem)
P = Present value
r = annual interest rate, expressed as a decimal
t = time in years
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Plugging in the given values:
+94000+=+81577e%5E%280.063t%29+
+94000%2F81577+=+e%5E%280.063t%29+
+ln%2894000%2F81577%29+=+0.063t+
+ln%2894000%2F81577%29%2F0.063+=+t+
++2.24995+=+t+
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Ans: +t+=+2.25+ years
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Check: +A+=+81577e%5E%280.063%2A2.25%29+=+94000.24+ (ok, considering rounding of t to 2.25. More digits of precision must be retained to get the exact answer 94000)