Question

Erica opens a bank account to save for college. She makes an intial deposit of 3,000!Into an account that pays 3% interest compounded continuously the formula below is the appropriate model for the situation use it to determine how long it will take her to reach a balance of 8,400

Answer 1

35 years

Explanation:

A= P(1 + r)^n

A= $8400

r= 3%

n= ?

P= $3000

8400 = 3000(1 + 0.03)^n

8400/3000 = (1 + 0.03)^n

log2.8 = log (1.03)^n

log 2.8 = nlog 1.03

n=log 2.8/log 1.03

n= 35 years