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Math Help - Interest Compounded Continuously

  1. #1
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    Interest Compounded Continuously

    Currently has $4679, but know he can get a loan at a lower interest rate if he can put down $5489. If he invests the $4679 in an account that earns 4.1% annually, compounded continuously, how long will it take him to accumulate the $5489?

    Can anybody help me with working this problem.
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  2. #2
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    Once you've seen it, you will know.

     <br />
4679 \cdot e^{t*0.041}\;=\;5489<br />

    Solve for 't'.
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  3. #3
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    ok thank you for your help...ok still need help on solving it...mine aint working out right?!
    Last edited by fscc; November 8th 2009 at 05:23 PM.
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  4. #4
    Super Member Bacterius's Avatar
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    4679 \cdot e^{t \times 0.041}\;=\;5489

    e^{t \times 0.041}\;=\; \frac{ 5489}{4679}

    ln(e^{t \times 0.041})\;=\; ln(\frac{ 5489}{4679})

    t \times 0.041\;=\; ln(\frac{ 5489}{4679})

    t \;=\; \frac {ln(\frac{ 5489}{4679})}{0.041}

    t \; \approx \; 3,89 (2 d.p.)
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  5. #5
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    Quote Originally Posted by fscc View Post
    ok thank you for your help...ok still need help on solving it...mine aint working out right?!
    Not good. You should have prerequisites that include simple exponentials and logarithms before getting to this class. Have you been skipping around the curriculum?
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