r = .06
A = 3850 * e^(.06*5)
A = $ 5197
b)
10,000 = 3850 * e^(.06 t)
ln ( 2.597) = .06 t
t = 16
Hannah invests $3850 dollars at an annual rate of 6% compounded continuously, according to the formula A=Pe^rt, where A is the amount, P is the principal, e=2.718, r is the rate of interest, and t is the time, in years.
(a) Determine, to the nearest dollar the amount of money she will have after 5 years.
(b) Determine how many years, to the nearest year, it will take for her investment to have a value of $10,000.
1 answer
1 answer