Andrew M. answered • 10/30/17

Tutor

New to Wyzant
Mathematics - Algebra a Specialty / F.I.T. Grad - B.S. w/Honors

A = p(1.07)

^{t}Emiy F.

asked • 10/30/17Suppose one bank account pays 7% annual interest compounded once per year, and a second bank account pays 7% annual interest compounded continuously. If both bank accounts start with the same initial amount, how long will it take for the second bank account to contain twice the amount of the first bank account?

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Andrew M. answered • 10/30/17

Tutor

New to Wyzant
Mathematics - Algebra a Specialty / F.I.T. Grad - B.S. w/Honors

A = p(1.07)^{t}

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Andrew M.

^{t}Continuous: A = pe^{.07t}^{.07t}= 2p(1.07)^{t}^{.07t}= 2(1.07)^{t}^{.07t}= ln[2(1.07)^{t]}^{t}10/30/17