Question

A woman invests $6200 in an account that pays 6% interest per year, compounded continuously. (a) What is the amount after 3 years? (Round your answer to the nearest cent.) Enter a number. (b) How long will it take for the amount to be $8000? (Round your answer to two decimal pla yr

Answer 1

A women inverts $6200 rate of interest = 6% por year. and compounding is continuously. A = p. est Formula: where A = Amount, P= Principal, r= rate of interest t time in years, e= mathematical constant e. (a Here P = $6200, 8=0.06 t= 3 years (0:06)x3 A = 6200 x & 6200 x 6200 X 1-20 A = $7440 Amount after 3 years is $741 7440. 6 for amount to be $8000, we have A$8000, p= $8200, t=? 8=0.06 gooxt 8000 = е 6200 x 0.06xt 8000 6200 0.06xt 1:29 = (Taking logarithm) en (1.29) = ln coooxty 0-25 = (0.06 xt) (ene) = t. (loce) 0.25 0.06 41666 =t . t=4.1666 t = 4.17 years