The value of a particular investment follows a pattern of exponential growth. In the year 2000, you invested money in a money market account. The value of your investment t years after 2000 is given by the exponential growth model A=7200e^0.045t

Question

A) How much money did you initially invest in the account?
B) How much would you have invested after 10, 20, and 30 years?
C) How long will it take for the invest to reach $10,200?

Answer 1

A) what is A(0)?
B) Plug in the values for t
C) solve for t in: 7200e^0.045t = 10200

Answer 2

anything^0 = 1 no matter what
so
at t = 0
A = 7200 * 1

I am not going to do them all for you
at t = 20 for example
A= A=7200e^0.045*20 = 7200 e^0.9 = 17,709.14

for part C
10,200 = 7200e^0.045t
102/72 = e^0.045t
ln (102/72) = 0.045 t
.3483/0.045 = t = 7.74 years

Answer 3

remember log base n of n^anything = the same anything