Question
Refer to the formulas for compound interest.$$A=P\left(1+\frac{r}{n}\right)^{t n} \text { and } A=P e^{r t} \quad \text { (Section 4.2) }$$Find $t$ to the nearest hundredth of a year if 1786 dollars becomes 2063 dollars at $2.6 \%,$ with interest compounded monthly.
Step 1
We have $A = 2063$, $P = 1786$, $r = 2.6\% = 0.026$, and $n = 12$ (since interest is compounded monthly). We are solving for $t$. Show more…
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Refer to the formulas for compound interest $$A=P\left(1+\frac{r}{n}\right)^{i n} \text { and } A=P e^{rt}.$$ Find $t$ to the nearest hundredth if $\$ 1786$ becomes $\$ 2063$ at $2.6 \%$, with interest compounded monthly.
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Refer to the formulas for compound interest. $$A=P\left(1+\frac{r}{n}\right)^{t n} \text { and } A=P e^{r t} \quad \text { (Section 4.2) }$$ At what interest rate, to the nearest hundredth of a percent, will 16,000 dollars grow to 20,000 dollars if invested for 5.25 yr and interest is compounded quarterly?
To solve each problem, refer to the formulas for compound interest. $$A=P\left(1+\frac{r}{n}\right)^{m} \text { and } A=P e^{n t}$$ Find $t$ to the nearest hundredth of a year if $\$ 1786$ becomes $\$ 2063$ at $2.6 \%,$ with interest compounded monthly.
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