Question

Suppose that ​$17,360 is invested at an interest rate of 6.3% per​ year, compounded continuously. ​a) Find the exponential function that describes the amount in the account after time​ t, in years. ​b) What is the balance after 1​ year? 2​ years? 5​ years? 10​ years? ​c) What is the doubling​ time?

Answer 1

E is about equal to 2.71828182846...

Explanation

1 Year = $10634.14

2 Years = $11246.64

5 Years = $13304.07

10 Years = $17603.01

divide both sides by 10055

take the natural log of both sides

divide both sides by 0.056

ln is just natural log, which is log base e

t = 12.3776282242847375