Question

Describe the accumulated value a of the sum of money P the principal after two years at annual percent rich are in the decimal form compounded continuously complete the table for the saving account subject to continuous compounding.

Answer 1

In order to calculate the value of t, we can use the given formula with the values P = 6000, A = 2P and i = 11% = 0.11:

$\begin{gathered} 2\cdot6000=6000\cdot e^{0.11t}\\ \\ 2=e^{0.11t}\\ \\ \ln2=\ln e^{0.11t}\\ \\ 0.693147=0.11t\\ \\ t=\frac{0.693147}{0.11}=6.3 \end{gathered}$

Therefore the time needed is t = 6.3 years.