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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.
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.

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bakonloverk
 3 years ago
Best ResponseYou've already chosen the best response.1multiply 1,500 * 0.03 * 5

bakonloverk
 3 years ago
Best ResponseYou've already chosen the best response.1then add tht 2 1,500

bakonloverk
 3 years ago
Best ResponseYou've already chosen the best response.1so it would b 1,500 + 225

bakonloverk
 3 years ago
Best ResponseYou've already chosen the best response.1so the first answer is $1,725

greenandblue
 3 years ago
Best ResponseYou've already chosen the best response.0Thank you so much but i got one question how did you get the 225 and also what does it mean natural logarithm?

bakonloverk
 3 years ago
Best ResponseYou've already chosen the best response.1the 225 is 1,500 * 0.03 * 5

bakonloverk
 3 years ago
Best ResponseYou've already chosen the best response.1and no i dont know wht the natural logarithm is

greenandblue
 3 years ago
Best ResponseYou've already chosen the best response.0okay thank you so much seriously you have no idea!:)

satellite73
 3 years ago
Best ResponseYou've already chosen the best response.0\[1500(1.03)^5\] for the first one second one solve \[2=(1.03)^t\] via \[t=\frac{\ln(2)}{\ln(1.03)}\]

tkhunny
 3 years ago
Best ResponseYou've already chosen the best response.3We 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 \(t\) \(t = \dfrac{ln(2)}{0.03} = 23.105\)

tkhunny
 3 years ago
Best ResponseYou've already chosen the best response.3@greenandblue @bakonloverk @satellite73

tkhunny
 3 years ago
Best ResponseYou've already chosen the best response.3Yup. 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. :)
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