A community for students.

Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

anonymous

  • one year ago

Assume you invest $ 7500 in an account that pays an annual interest rate of 5.2 % that will be compounded continuously.

  • This Question is Closed
  1. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    How much money is in the account after 13 years with the given rate? $14744.98

  2. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    If you want the account to contain $ 9200 after 13 years, what yearly interest rate is needed?

  3. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    @welshfella Can you help me?

  4. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    for the first one it is 7500(1 .052)^13

  5. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    I get a slightly different result to you Did you use the above formula?

  6. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    I used P=7500e^(0.052)(13)

  7. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    oh yes its compounded continuously! I overlooked that

  8. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    I'm just confused on how you get the answer to this: If you want the account to contain $ 9200 after 13 years, what yearly interest rate is needed?

  9. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    P becomes 9200 and put x for 0.052 then solve for x.

  10. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    9220 = 7500e^(13x)

  11. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    can you solve that?

  12. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    I agree with your first answer

  13. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    How do I solve for x?

  14. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    first divide both sides by 7500 e^13x = 1.22666667 now take logs of both sides ln e^13x = ln 1.226666667 13x = ln 1.226666667 x = ln 1.226666667 / 13

  15. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    do you follow that ?

  16. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    ln means log to the base e so if we have e^x then the log of it is x

  17. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    if you have a variable as an exponent a good way to solve is to take logs

  18. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Got it! 1.57%

  19. anonymous
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 0

    Thanks so much!!!

  20. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    grab ur calculator and divide ln 1.226666667 by 13

  21. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    1.57 is correct

  22. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    1.57%

  23. welshfella
    • one year ago
    Best Response
    You've already chosen the best response.
    Medals 1

    yw

  24. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy

Your question is ready. Sign up for free to start getting answers.

spraguer (Moderator)
5 → View Detailed Profile

is replying to Can someone tell me what button the professor is hitting...

23

  • Teamwork 19 Teammate
  • Problem Solving 19 Hero
  • You have blocked this person.
  • ✔ You're a fan Checking fan status...

Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.

This is the testimonial you wrote.
You haven't written a testimonial for Owlfred.