Supposed $1000 is invested at interest rate K, compounded continuously, and grow

Question

Supposed $1000 is invested at interest rate K, compounded continuously, and grows to $1144.54 in 3 years? 1. Find the interest rate 2. Find the exponential growth function 3. Find the balance after 8 years 4. Find the doubling time With using this formula A=Pekt Supposed $1000 is invested at interest rate K, compounded continuously, and grows to $1144.54 in 3 years? 1. Find the interest rate 2. Find the exponential growth function 3. Find the balance after 8 years 4. Find the doubling time With using this formula A=Pekt 1. Find the interest rate 2. Find the exponential growth function 3. Find the balance after 8 years 4. Find the doubling time With using this formula A=Pekt

Explanation / Answer

1)

1144.54 = 1000*e^(3*i)

i = 4.5%

2)

growth function

A(t) = 1000 * e^(0.045*t)

3)

A(8) = 1000 * e^(0.045*8) = 1433.33

4)

2000 = 1000 * e^0.045*t

t = 15.40 years

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