Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded continuously. At the end of 3 yr, the amount in the account has eamed $806.07 in interest. a. Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe" and substitute P + 806.07 for A.) b. Using the original principal from part (a) and the model A = Pe", determine the time required for the investment to reach $10,000. Round to the nearest year.

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Suppose that P dollars in principal is invested in an
account earning 3.2% interest compounded
continuously. At the end of 3 yr, the amount in the
account has eamed $806.07 in interest.
a. Find the original principal. Round to the nearest
dollar. (Hint: Use the model A = Pe" and substitute
P + 806.07 for A.)
b. Using the original principal from part (a) and the
model A = Pe", determine the time required for
the investment to reach $10,000. Round to the
nearest year.
Transcribed Image Text:Suppose that P dollars in principal is invested in an account earning 3.2% interest compounded continuously. At the end of 3 yr, the amount in the account has eamed $806.07 in interest. a. Find the original principal. Round to the nearest dollar. (Hint: Use the model A = Pe" and substitute P + 806.07 for A.) b. Using the original principal from part (a) and the model A = Pe", determine the time required for the investment to reach $10,000. Round to the nearest year.
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