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Molodets [167]
3 years ago
8

Stanley Bank offers a money market account that earns 1.85% compounded continuously: a) If $10,000 is invested in this type of a

ccount, how much will it be worth in 3 years? b) How long will it take for the account to be worth $15,000?
Mathematics
1 answer:
Alexxx [7]3 years ago
5 0

Answer:

a) $1056.33 b) 23 years

Step-by-step explanation:

a) 10000(1+1.85/100)^3=10565.33 (2d.p.)

b) let x be the no. of years

15000 = 10000(1+1.85/100)^x

1.5 = 1.0185^x

ln both sides

ln 1.5 = x ln 1.0185

x = ln 1.5/ln 1.0185

=22.11

=23 years (rounded up)

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