Question

Please see attachment for question. I have also uploaded a example for reference.

Answer 1

`A=Pe^(rt)`

A=$88,000

P=$70,586

r=9.8% (0.098)

`88,000=70,586e^((0.098)t)`

Divide both sides by 70,586:

`\begin{gathered} (88,000)/(70,586)=(70,586)/(70,586)e^((0.098)t) \\ \\ (88,000)/(70,586)=e^((0.098)t) \end{gathered}`

Find ln of both sides:

`\begin{gathered} \ln ((88,000)/(70,586))=\ln (e^((0.098)t)) \\ \\ \ln ((88,000)/(70,586))=0.098t \end{gathered}`

Divide both sides by 0.098:

`\begin{gathered} (\ln ((88,000)/(70,586)))/(0.098)=(0.098)/(0.098)t \\ \\ (\ln((88,000)/(70,586)))/(0.098)=t \\ \\ \\ t=2.25 \end{gathered}`Then, t is 2.25 years