You deposit $3000 in an account earning 7% interest compounded continuously. The amount of money in the account after years is given by A(t)=3000 e^(0.07 t) .

Question

How much will you have in the account in 5 years? $ Round your answer to 2 decimal places.

How long will it be until you have $17700 in the account? years. Round your answer to 2 decimal places.

How long does it take for the money in the account to double? years. Round your answer to 2 decimal places.

Answer 1

you have the formula. Just use your calculator, or any online calculator to find the values.

For #1, just plug in t=5
For #2, just solve

3000 e^(0.07t) = 17700
e^(0.07t) = 5.9
0.07t = ln 5.9
...

For #3, just solve

e^(0.07t) = 2

Answer 2

if you deposit $13,000 per year at 5% interest compounded annually, what will your balance be at the end of the 12th year?

Answer 3

Answers