Question

1. How would you write the logarithm of x base 3 equations 27 in a formula?2. How much money would you have in the bank if you deposited $300 at an interest rate of 4% after 1 yearcompounded continuously?Hint: P-initial amount, r=rate in decimal, t=number of yearsP(t) = Poe^rt

Answer 1

Continuous Interest

When an investment is made at continuous interest, the amount of money available is calculated with the formula:

`P(t)=P_o\cdot e^(r\cdot t)`

Where Po is the initial amount, r=interest rate, t= number of years.

The data given in the problem is:

Po= $300

r = 4% = 0.04

t = 1 year

Substituting:

`P(1)=300\cdot e^(0.04\cdot1)=300\cdot1.0408=312.24`

You would have $312.24 in the bank