Here's the question you clicked on:

greenandblue 3 years ago 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. • This Question is Closed 1. bakonloverk multiply 1,500 * 0.03 * 5 2. bakonloverk then add tht 2 1,500 3. bakonloverk so it would b 1,500 + 225 4. bakonloverk so the first answer is$1,725

5. greenandblue

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

the 225 is 1,500 * 0.03 * 5

7. bakonloverk

and no i dont know wht the natural logarithm is

8. greenandblue

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

9. bakonloverk

lol ur welcome

10. anonymous

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

11. tkhunny

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

@greenandblue @bakonloverk @satellite73

13. bakonloverk

u called 4 me?

14. tkhunny

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

ohhhh kk

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy