Concept explainers
Tocomplete:
The given table for a savings account which is compounded continuously.
Answer to Problem 18E
The completed table is:
Explanation of Solution
Given:
Initial investment in a continuously compounded account is $300 and after 10 years it becomes $385.21.
Formula used:
Amount in a continuously compounded account is given by:
Calculation:
We have been given the initial investment as $300 and that it becomes $385.21.Upon substituting these values in the formula for continuously compounded interest, we get:
We can rewrite the formula as:
In order to find the doubling time, we will replace A by 300 and solve for t as shown below:
Therefore, the complete table is:
Chapter 3 Solutions
PRECALCULUS W/LIMITS:GRAPH.APPROACH(HS)
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- Calculus: Early TranscendentalsCalculusISBN:9781319050740Author:Jon Rogawski, Colin Adams, Robert FranzosaPublisher:W. H. FreemanCalculus: Early Transcendental FunctionsCalculusISBN:9781337552516Author:Ron Larson, Bruce H. EdwardsPublisher:Cengage Learning