Question 978544: 2000 dollars is invested in a bank account at an interest rate of 7 percent per year, compounded continuously. Meanwhile, 46000 dollars is invested in a bank account at an interest rate of 5 percent compounded annually.
To the nearest year, When will the two accounts have the same balance?
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! 2000 dollars is invested in a bank account at an interest rate of 7 percent per year, compounded continuously. Meanwhile, 46000 dollars is invested in a bank account at an interest rate of 5 percent compounded annually.
To the nearest year, When will the two accounts have the same balance?
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Equation:
2000*e^(0.07t) = 46000(1.05)^t
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23 = e^(0.07t)/(1.05)^t
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2e = [e^0.07/1.05]^t
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t = ln(2e)/ln[e^0.07/1.05]
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t = 1.69/0.0212
t = 80 years when rounded up
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Cheers,
Stan H.
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