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Math Help - Help with simple financial problem

  1. #1
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    Help with simple financial problem

    Suppose on Jan 1, 1997 Dave invested $2,000 into a bank account at 5% interest compounded continuously. Let y(t) be the value of Dave's investment after t years.

    Also on Jan 1, 1997 John decides to invest. He put $2,500 into an account at
    3% interest compounded monthly. Let g(t) be the value of John's investment after t years.

    To the nearest tenth, at what time t is the value of both accounts the same?

    So I know you set ;

    2000e^(.03)t = 2,500 (1 + .03/12) ^ (12)t

    How do you go about solving?
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  2. #2
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    Take the log of both sides, and then use the fact that
    ln (a^b) = b (ln (a))
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  3. #3
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    Quote Originally Posted by nikkkk View Post
    Suppose on Jan 1, 1997 Dave invested $2,000 into a bank account at 5% interest compounded continuously. Let y(t) be the value of Dave's investment after t years.

    Also on Jan 1, 1997 John decides to invest. He put $2,500 into an account at
    3% interest compounded monthly. Let g(t) be the value of John's investment after t years.

    To the nearest tenth, at what time t is the value of both accounts the same?

    So I know you set ;

    2000e^(.03)t = 2,500 (1 + .03/12) ^ (12)t

    How do you go about solving?
    If the values for t had the same base this would be very easy to solve.

    I would put these functions into excel and find where they are equal.
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