Question

Suppose you invest $130 at 10% compounded continuously.
a. Wrote an exponential function to model the amount in your investment account.
b. Explain what each value in the function model represents.
c. In how many years will the total reach 600$?

Answer 1

\[A=Pe^{rt}\]

Answer 2

A= amount after time t

Answer 3

P= principal amount

Answer 4

r= interest rate

Answer 5

t= number of years

Answer 6

at about 15.9 years you will reach 600$

Answer 7

\[130\times e^{.1\times15.29} = 599.763\]

Answer 8

\[130 \times e^{.10\times15.3} = 600.363\]

Answer 9

hope this helped

Answer 10

Thank you! How did you know 15.29 or 15.3 would be close to 600? Is there a specific formula to figure that out or did you just use your calculator and guessed?

Answer 11

There is a formula. But look at what I did and see if you can try.