Question

What is A if r = 0.006, t = 210, and P = $1500.00? Use A = P(1 + r)t.

Answer 1

A=P.e^(rt)

Calculate A;

A = 1500.e^(0.006 x 210)

A=1500.e^(1.26)

ln A = ln (1500.e^(1.26)

ln A = ln 1500 +1.26 lne
ln A = 7.31322 + 1.26 ===> ln A = 8.57322 ==> A = e^(8.57322) = 5288

Answer 2

A = P(1 + r)^t
A = 1500(1+0.006)^210
A = 5268.26