Problema Solution
The formula to find the total amount in your savings account (if interest is compounded continously)after t years is A=Pe^(rt). (A= total amount,
P= original amount)and r= interest rate).
Round answers to the nearest year:
a. How long does it take to double your money at 8% interest?
b. How long does it take to double your money at 5% interest?
Answer provided by our tutors
the formula to find the total amount in your savings account(if interest is compounded continuously) after t years is A=Pe^rt (A=total amount, P=original amount, and r=interest rate.)
1. how long does it take your money to double at 8% interest? (round to the nearest year.)
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2*1000 = 1000*e^(0.08t)
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e^(0.08t) = 2
Take the natural log to get:
0.08t = ln2
t = (ln(2)/0.08 = 8.66 years
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2. what about at 5%? (round to the nearest year.)
0.05t = ln2
t = (ln(2))/0.05
t = 13.86 years