Question

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.

Answer 1

multiply 1,500 * 0.03 * 5

Answer 2

then add tht 2 1,500

Answer 3

so it would b 1,500 + 225

Answer 4

so the first answer is $1,725

Answer 5

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

Answer 6

the 225 is 1,500 * 0.03 * 5

Answer 7

and no i dont know wht the natural logarithm is

Answer 8

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

Answer 9

lol ur welcome

Answer 10

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

Answer 11

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 \(t\)

\(t = \dfrac{ln(2)}{0.03} = 23.105\)

Answer 12

@greenandblue @bakonloverk @satellite73

Answer 13

u called 4 me?

Answer 14

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. :-)

Answer 15

ohhhh kk