Suppose that P dollars in principal is invested in an account earning 2.1 % interest compounded continuously. At the end of 2 yr, the amount in the account has earned $193 .03 in interest. a. Find the original principal. Round to the nearest dollar. b. Using the original principal from part (a) and the model A = P e r t , determine the time required for the investment to reach $6000 . Round to the nearest year.
Suppose that P dollars in principal is invested in an account earning 2.1 % interest compounded continuously. At the end of 2 yr, the amount in the account has earned $193 .03 in interest. a. Find the original principal. Round to the nearest dollar. b. Using the original principal from part (a) and the model A = P e r t , determine the time required for the investment to reach $6000 . Round to the nearest year.
Solution Summary: The author calculates the original principal rounded off to the nearest dollar using the exponential growth model A=Pert.
Suppose that P dollars in principal is invested in an account earning
2.1
%
interest compounded continuously. At the end of 2 yr, the amount in the account has earned
$193
.03
in interest.
a. Find the original principal. Round to the nearest dollar.
b. Using the original principal from part (a) and the model
A
=
P
e
r
t
, determine the time required for the investment to reach
$6000
. Round to the nearest year.
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