Complete the table for a savings account in which interest is compounded continuously. (Round any dollar amount to the nearest cent and any other value to 4 decimal places.)

Question

Complete the table for a savings account in which interest is compounded continuously. (Round any dollar amount to the nearest cent and any other value to 4 decimal places.)

Initial	Investment		Annual	% Rate		Time to	Double		Amount After	14 Years
$1,000		%		12 yr		$

Answer 1

initial amount $1,000

12%

A=Pe^rt

2000=1000e^.12t

2=e^.12t

ln2 = .12t

t = ln2/.12

t = about 5.78 years to double the investment from $1,000 to $2,000

2=e^5.78r

ln2 = 5.78r

r = ln2/5.78 = about .12 = 12%

after 14 years

A=1000e^.12(14) = 1000e^1.6 = $4953