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Sagot :
Answer:
12 years
Explanation:
For an investment whose interest is compounded continuously, the amount in the account after t years is determined using the formula:
[tex]A(t)=P_oe^{rt}\text{ where }\begin{cases}{P_o=\text{ The amount invested}} \\ r=Interest\text{ }{Rate} \\ {t}=Time\end{cases}[/tex]In our given problem:
• A(t) = $6,000
,• Po = $4000
,• r = 3.5% = 0.035
We want to find the value of t.
Substitute the given values into the formula:
[tex]6000=4000e^{0.035t}[/tex]Then solve for t:
[tex]\begin{gathered} \text{ Divide both sides by 4000} \\ \frac{6000}{4000}=\frac{4000e^{0.035t}}{4000} \\ 1.5=e^{0.035t} \\ \text{ Take the ln of both sides:} \\ \ln(1.5)=\ln(e^{0.035t}) \\ 0.035t=\ln(1.5) \\ \text{ Divide both sides by }0.035 \\ \frac{0.035t}{0.035}=\frac{\operatorname{\ln}(1.5)}{0.035} \\ t=11.58 \\ t\approx12\text{ years} \end{gathered}[/tex]It will take Dennis 12 years (rounded to the nearest year) before he has $6,000 in his account.
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