Problema Solution
The value of a particular investment follows a pattern of exponential growth. In the year 2000, you invested money in a money market account. the value of your investment t years after 2000 is given by the exponential growth model A=6500e0.064t. When will the account be worth $10,174?
Answer provided by our tutors
A(t)=6500e^(0.064t)
We need to find t such that A(t) = $10,174 that is:
6500e^(0.064t) = 10174
e^(0.064t) = 10174/6500
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click here to see the equation solved for t
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t = 7 years
7 years after 2000 is 2007
In the year 2007 the account will be $10,174 worth.