Question

With continuous compounding, a principal of P dollars accumulates to an amount A given by the equation

A = Pe^rt
where r is the interest rate and t is the time in years.
a) suppose you start with a principal of $1000 and an interest rate of 7%. how much work will you have in ten years
b)suppose you start with a principal of $1000 and an interest rate of 75. how long will it be until you have $2000? round to the nearest tenth of a year. PLEASE HELP

Answer 1

a)


`\bf \qquad \textit{Continuously Compounding Interest Earned Amount}\\\\ A=Pe^(rt)\qquad \begin{cases} A=\textit{accumulated amount}\\ P=\textit{original amount deposited}\to& \$1000\\ r=rate\to 7\%\to (7)/(100)\to &0.07\\ t=years\to &10 \end{cases} \\\\\\ A=1000e^(0.07\cdot 10)`