SOLUTION: From Textbook Wills and May Study word problems:
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Suppose $5000 is invested at interest rate k, compounded continuously and grows to $6954.84 in 6 years. Fin
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Suppose $5000 is invested at interest rate k, compounded continuously and grows to $6954.84 in 6 years. Fin
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Question 144565: From Textbook Wills and May Study word problems:
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Suppose $5000 is invested at interest rate k, compounded continuously and grows to $6954.84 in 6 years. Find the interest rate and Find the exponential growth function also Find the balance after 10 years.
You can put this solution on YOUR website! Suppose $5000 is invested at interest rate k, compounded continuously and grows to $6954.84 in 6 years. Find the interest rate and Find the exponential growth function also Find the balance after 10 years.
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A(t) = A(o)e^(6r)
6954.84 = 5000e^(6r)
1.3909.. = e^6r
6r = ln1.3909
r = 0.054999
r = 5.5%
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Balance after 10 years
A(10) = 5000e^(0.055*10)
A(10) = 5000e^(0.55)
A(10) = 5000*1.73325
A(10) = $8666.27
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Cheers,
Stan H.
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