Question

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

Answer 1

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

Answer 2

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

Answer 3

@welshfella Can you help me?

Answer 4

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

Answer 5

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

Answer 6

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

Answer 7

oh yes its compounded continuously! I overlooked that

Answer 8

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?

Answer 9

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

Answer 10

9220 = 7500e^(13x)

Answer 11

can you solve that?

Answer 12

I agree with your first answer

Answer 13

How do I solve for x?

Answer 14

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

Answer 15

do you follow that ?

Answer 16

ln means log to the base e

so if we have e^x then the log of it is x

Answer 17

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

Answer 18

Got it! 1.57%

Answer 19

Thanks so much!!!

Answer 20

grab ur calculator and divide ln 1.226666667 by 13

Answer 21

1.57 is correct

Answer 22

1.57%

Answer 23

yw