Question

Suppose that $11,353 is invested at an interest rate of 5.7% per year, compounded continuously.

a) Find the exponential function that describes the amount in the account after time t, in years.
b) What is the balance after 1 year? 2 years? 5 years? 10 years?
c) What is the doubling time?

Answer 1

Explanation:

1)11357*(105.7/100)^t

2)1 year 12000.121 2 year 12684 5 year 14979.1 10 years 19763.3

3)11357*(105.7/100)^t=22714 so t+12.5