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(a) Compound interest continuously.
Let’s first set up the equation that we’ll need to solve. 4000 = 2500e0.12t
Now, we saw how to solve these kinds of equations a couple of sections ago. In that section we
saw that we need to get the exponential on one side by itself with a coefficient of 1 and then take
the natural logarithm of both sides. Let’s do that. 4000
1.6 = e0.12t
ln1.6 = ln e0.12 t
ln1.6 = 0.12 t Þ t= ln1.6
0.12 We need to keep the amount in the account for 3.917 years to get $4000.
[Return to Problems] (b) Ccompound interest 6 times a year.
Again, let’s first set up the equation that we need to solve. æ 0.12 ö
4000 = 2500 ç1 +
4000 = 2500 (1.02 ) 6t 6t We will solve this the same way that we solved the previous part. The work will be a little
messier, but for the most part it will be the same. © 2007 Paul Dawkins 310 http://tutorial.math.lamar.edu/terms.aspx College Algebra 4000
= (1.02 )
1.6 = (1.02 ) 6t ln1.6 =...
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This note was uploaded on 06/06/2012 for the course ICT 4 taught by Professor Mrvinh during the Spring '12 term at Hanoi University of Technology.
- Spring '12