A store has ergonomic chairs on sale for 10% off of the regular price. Cayley finds a chair she wants to buy that has an origina
1 answer:
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Answer:
part 1) 10 years
part 2) 10 years
Step-by-step explanation:
<u><em>The correct question is:</em></u>
Part 1) Alex invests $2000 in an account that has a 6% annual rate of growth compounded annually. To the nearest year, when will the investment be worth $3600?
Part 2) Alex invests $2000 in an account that has a 6% annual rate of growth compounded continuously. To the nearest year, when will the investment be worth $3600?
Part 1) we know that
The compound interest formula is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
n is the number of times interest is compounded per year
in this problem we have
substitute in the formula above
Apply log both sides
Applying property of exponents
Round to the nearest year
Part 2) we know that
The formula to calculate continuously compounded interest is equal to
where
A is the Final Investment Value
P is the Principal amount of money to be invested
r is the rate of interest in decimal
t is Number of Time Periods
e is the mathematical constant number
we have
substitute in the formula above
Apply ln both sides
Round to the nearest year