SOLUTION: Gabriella is going to invest $45,000 and leave it in an account for 9 years. Assuming the interest is compounded continuously, and earns 5.5%. How long would be required in order f

Algebra ->  Test -> SOLUTION: Gabriella is going to invest $45,000 and leave it in an account for 9 years. Assuming the interest is compounded continuously, and earns 5.5%. How long would be required in order f      Log On


   

Question 1154395: Gabriella is going to invest $45,000 and leave it in an account for 9 years. Assuming the interest is compounded continuously, and earns 5.5%. How long would be required in order for Gabriella to end up with $74,000?
Answer by ikleyn(52903) About Me  (Show Source):
You can put this solution on YOUR website!
.

74000 = 45000%2Ae%5E%280.055%2At%29


74000%2F45000 = e%5E%280.055%2At%29


1.64444 = e%5E%280.055%2At%29


Take the natural logarithm from both sides


ln(1.64444) = 0.055t


t = ln%281.64444%29%2F0.055 =  = 9.043 years.      ANSWER

Solved.

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To see other similar solved problems, look into the lesson
    - Problems on continuously compound accounts
in this site.

Also,  you have this free of charge online textbook in ALGEBRA-I in this site
    - ALGEBRA-I - YOUR ONLINE TEXTBOOK.

The referred lesson is the part of this online textbook under the topic "Logarithms".


Save the link to this online textbook together with its description

Free of charge online textbook in ALGEBRA-I
https://www.algebra.com/algebra/homework/quadratic/lessons/ALGEBRA-I-YOUR-ONLINE-TEXTBOOK.lesson

to your archive and use it when it is needed.