17. Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded continuously. At the end of 3 yr, the amount in the account has earned $806.07 in interest. a. Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe" and substitute P + 806.07 for A.) b. Using the original principal from part (a) and the model A = Pe", determine the time required for the investment to reach $10,000. Round to the nearest year.

Intermediate Algebra
10th Edition
ISBN:9781285195728
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter11: Exponential And Logarithmic Functions
Section11.2: Applications Of Exponential Functions
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#17, how to find the principal.

17. Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded
continuously. At the end of 3 yr, the amount in the account has earned $806.07 in interest.
a. Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe" and
substitute P + 806.07 for A.)
b. Using the original principal from part (a) and the model A = Pe", determine the time required for
the investment to reach $10,000. Round to the nearest year.
Transcribed Image Text:17. Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded continuously. At the end of 3 yr, the amount in the account has earned $806.07 in interest. a. Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe" and substitute P + 806.07 for A.) b. Using the original principal from part (a) and the model A = Pe", determine the time required for the investment to reach $10,000. Round to the nearest year.
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