Alfred is saving up money for a down payment on a house. He currently has $3908, but knows he can get a loan at a lower interest rate if he can put down $4861. If he invests the $3908 in an account that earns 4.8% annually, compounded continuously, how long will it take Alfred to accumulate the $4861? Round your answer to two decimal places, if necessary.

asked by NoName

4 years ago

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1 answer

3908*e^.048t = 4861
t = 4.55 years

answered by oobleck

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Question

Alfred is saving up money for a down payment on a house. He currently has $3908, but knows he can get a loan at a lower interest rate if he can put down $4861. If he invests the $3908 in an account that earns 4.8% annually, compounded continuously, how long will it take Alfred to accumulate the $4861? Round your answer to two decimal places, if necessary.

1 answer

3908*e^.048t = 4861
t = 4.55 years

oobleck · Answer

3908*e^.048t = 4861 t = 4.55 years