#20 3.07 Precalculus questions

label Mathematics
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

May 14th, 2015

If you want an investment of $2500 to double, then you want it to get to 2500 x 2 =$5000. From the other information given in the problem, you have A = $5000, P = $2500, and r = 9% = .09. Plug those values into the formula and solve for t:

5000 = 2500 e^(.09t) 

Divide by 2500

2 = e^.(09t)

Take the natural logarithm of both sides to get the variable out of the exponent.

ln 2 = ln e^(.09t)

ln 2 = (.09t) ln e

Since ln e = 1, you get...

ln 2 = .09t

Divide by .09

(ln 2)/(.09) = t

Put that expression into the calculator to get...

t = 7.7 years


May 14th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
May 14th, 2015
...
May 14th, 2015
Jun 28th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer