A=p(1+r/n)^tn and A=Pe^rt

Question

Which is a better plan for investing $10,000 for 8 years? 

Plan A: 4.5% Compounded continuously or 

Plan B: 5.5% Compounded daily?

Rewrite in logarithmic form:2^4=16

Solve the log equation:log3(2x+5)4

 

Answer 1

Question 1:

 

You should evaluate the accumulative values for each plan.  The plan with the higher accumulated amount is the better plan.  For plan A, use the compound continuous formula.  For Plan B, use the compound interest formula when n=365.

 

Question 2:

 

log₂16 = 4

 

 

Question 3:

 

3⁴ = 2x + 5

 

81 = 2x + 5

 

 

Solve for x.

Answer 2

2^4=16

 

2⁴ =16

 

log ₂ 16 = 4