Richey Loaner inherited $2105.22 from a not-so-rich uncle. If Richie deposits his money into an account that pays 3% compounded continuously for t years, then the function A(t)=2105.22e^0.03t gives the account balance after t years.

Question

(a) Find Richie’s account balance 6 years from now.

(b) Show all the work to algebraically find the number of years it will take for Richie
to become a millionaire ($1,000,000)? Show all steps to solve algebraically.

Answer 1

you have the formula. Just plug in t=6

To find how long it takes to get to a million,

2105.22e^0.03t = 1000000
e^.03t = 475
.03t = ln 475 = 6.1633
t = 205.44 years

Looks like 3% isn't gonna cut it, especially if you include inflation.

Answer 2

y=x+3
y=4x