Question

Use the continuous compound interest formula to find the indicated value. A $94,000; P $78,870; r= 7.8%; t =? t= years (Do not round until the final answer. Then round to two decimal places as needed.) TrueCar Enter your answer in the answer box. Prerequisite Skills Test for Finite Mathema eer of the heart bypass. Learn more Customize Getting Ready for Finite Mathematics Test AC 29057 12

Answer 1

Answer:

time period (t)  is 2.25 years

Step-by-step explanation:

Given data in question

amount (a) = $94000

principal (p) = $78870

rate (r) = 7.8 % = 0.078

to find out

time period (t)  

solution

we know that continuous compound interest formula i.e.

amount = principal $e^{rt}$   ...............1

we will put all value a, p and r  in equation 1

amount = principal $e^{rt}$

94000 = 78870 $e^{0.078t}$

$e^{0.078t}$ = 94000 / 78870

now we take ln both side

ln  $e^{0.078t}$  ln (94000 / 78870)

0.078 t = ln 1.19183466

0.078 t = 0.175494

t = 0.175494 /0.078  

t = 2.249923  

so time period (t)  is 2.25 years