Question

question shown in the photo, I answered the question but I’m not sure if i’m correct, especially for part B

Answer 1

Given,

The money deposite, P=$1500

The rate of interest is r=3%

Time, n=5 year.

a. The amount after 5 years is,

`A=Pe^(rn)=1500e^(0.03*5)=1742.75`

Thus the amount is $1742.75

b. Let time taken to double the money be 2.

Thus, A=2P

So,

`A=Pe^(rt)\Rightarrow2P=Pe^(rt)\Rightarrow2=e^(rt)`

Taking log we have,

ln2=rt

ln 2=0.03t

t=ln2/0.03=23 years

Thus the answer is 23 years.