## greenandblue Group Title PLEASE HELP ME ON THIS!! Joe deposits $1,500 in an account that pays 3% annual interest compounded continuously. a. How much will Joe have in his account after 5 years? b. How long will it take Joe to double his money? Use natural logarithms and explain your answer. one year ago one year ago • This Question is Closed 1. bakonloverk Group Title multiply 1,500 * 0.03 * 5 2. bakonloverk Group Title then add tht 2 1,500 3. bakonloverk Group Title so it would b 1,500 + 225 4. bakonloverk Group Title so the first answer is$1,725

5. greenandblue Group Title

Thank you so much but i got one question how did you get the 225 and also what does it mean natural logarithm?

6. bakonloverk Group Title

the 225 is 1,500 * 0.03 * 5

7. bakonloverk Group Title

and no i dont know wht the natural logarithm is

8. greenandblue Group Title

okay thank you so much seriously you have no idea!:)

9. bakonloverk Group Title

lol ur welcome

10. satellite73 Group Title

$1500(1.03)^5$ for the first one second one solve $2=(1.03)^t$ via $t=\frac{\ln(2)}{\ln(1.03)}$

11. tkhunny Group Title

We seem to be missing an important word in the original problem statement. "CONTINUOUSLY." a) $$1500\cdot e^{0.03\cdot5} = 1742.75$$ b) $$1500\cdot e^{0.03\cdot t} = 2\cdot 1500 = 3000$$ or $$e^{0.03\cdot t} = 2$$ Solving for $$t$$ $$t = \dfrac{ln(2)}{0.03} = 23.105$$

12. tkhunny Group Title

@greenandblue @bakonloverk @satellite73

13. bakonloverk Group Title

u called 4 me?

14. tkhunny Group Title

Yup. You did Simple Interest, Satellite73 did Annual Compound Interest. The problem statement requires Continuous Compounding. That's all. Lot's of ways to tackle these things. That's why banks and insurance companies are so confusing. :-)

15. bakonloverk Group Title

ohhhh kk