3 years ago

Cynthia's uncle told her to save 20% of her earnings

Mathematics

1 answer:

WARRIOR [948]3 years ago

4 0

Find 100/20 x 30
=150

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Ted invests $8,310 in a savings account with a fixed annual interest rate of 2% compounded continuously. How long will it take f

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Answer: It will take 8 years.

Step-by-step explanation:

Equation for interest compounded continuously:

$A=Pe^{rt}$ , A = accumulated amount , P=Principal value , r =rate of interest , t= time.

Given: P= $8,310 , r = 2% , A= $9,751.88

$9751.88=8310e^{0.02t}\\\\\Rightarrow\ \dfrac{9751.88}{8310}=e^{0.02t}\\\\\Rightarrow\ 1.17351143201=e^{0.02t}$

Taking natural log on both sides

$\ln (1.17351143201)=\ln (e^{0.02t})\\\\\Rightarrow\ 0.160000478068=0.02t\\\\\Rightarrow\ t=\dfrac{0.160000478068}{0.02}\\\\\Rightarrow\ t=8.0000239034\approx8$

Hence, it will take 8 years.

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