A woman invests $5900 in an account that pays 6% interest per year, compounded continuously, (a) What is the amount after 2 years? (Ro

Question

A woman invests $5900 in an account that pays 6% interest per year, compounded continuously,
(a) What is the amount after 2 years? (Round your answer to the nearest cent.)
$
(b) How long will it take for the amount to be $10,000? (Round your answer to two decimal places.)
Xyr

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Ximena 2 months 2021-10-13T09:37:40+00:00 1 Answer 0 views 0

Answers ( )

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    2021-10-13T09:38:55+00:00

    a) $6,608
    b) About 1.63 years

    To determine the annual interest amount, you take the initial amount ($5,900) and multiply it by the interest rate in decimal form (0.06).
    5,900 x 0.06 = 354
    Now, 354 is the ANNUAL rate, but we need to double it because the question specifies 2 years.
    354 x 2 = 708
    Now we have the interest amount for the 2 years, but we cannot forget to add in the initial amount as well.
    708 + 5,900 = 6,608

    For part b, we have to create an equation for the rate of growth the money experiences and set it equal to the specified amount of 10,000.
    The equation would be as follows: 10,000 = 5,900x + 354
    Solving the equation would work like this:
    10,000 = 5,900x + 354
    -354 -354
    9,646 = 5,900x
    /5,900 /5,900
    1.634915… = x
    Round the answer to get 1.63.

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45:7+7-4:2-5:5*4+35:2 =? ( )