Suppose that P dollars in principal is invested in an account earning 2.1% interest compounded continuously. At the end of 2 yr, the amount in the account has earned $193.03 in interest.Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pert and substitute P + 193.03 for A.)Using the original principal from part (a) and the model A = Pert, determine the time required for the investment to reach $6000. Round to the nearest tenth of a year.

Here , The continuous compounding is done which means that the interest can be constantly earned on…

Answered: Suppose that P dollars in principal is…

Algebra and Trigonometry (MindTap Course List)

4th Edition

ISBN:9781305071742

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter4: Exponential And Logarithmic Functions

Section4.2: The Natural Exponential Function

Problem 2E

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Suppose that P dollars in principal is invested in an account earning 2.1% interest compounded continuously. At the end of 2 yr, the amount in the account has earned $193.03 in interest.

Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe^rt and substitute P + 193.03 for A.)
Using the original principal from part (a) and the model A = Pe^rt, determine the time required for the investment to reach $6000. Round to the nearest tenth of a year.

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