Question 891414: A = Pert is used to model interest compounded continuously. If you deposit $4000 in an account paying 2.1% annual interest, compounded continuously, after how many years will the account balance first exceed $6000?
19 years
20 years
6 years
21 years
Answer by lwsshak3(11628)   (Show Source):
You can put this solution on YOUR website! A = Pert is used to model interest compounded continuously. If you deposit $4000 in an account paying 2.1% annual interest, compounded continuously, after how many years will the account balance first exceed $6000?
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A=Pe^rt, P=initial investment, r=interest rate, t=number of years, A=amount after t-years
A/P=e^rt
6000/4000=e^rt
1.5=e^.021t
ln1.5=.021tlne
t=ln1.5/.021
t=19.3
after how many years will the account balance first exceed $6000? 20
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