math

posted by .

One thousand dollars is deposited in a savings account at 6% interest compounded continously.
How many years are required for the balance in the account to reach $2500

  • math -

    CONTINUOUSLY: A=Pe^(rt)
    (e=2.71828 18284 59045 23536…)


    PERIODICALLY: A=P(1+r/n)^(nt)
    P = principal amount (the initial amount you borrow or deposit)
    r = annual rate of interest (as a decimal)
    t = number of years the amount is deposited or borrowed for.
    A = amount of money accumulated after n years, including interest.
    n = number of times the interest is compounded per year



    Since it's compounded continuously, use Pert (The first formula).

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Calculas HS

    continous compounding you have $1000 wiht which to open an account to which you plan also to add $ 1000 per year. all funds in the account will earn 10% annual interest compounded continously. if the added deposits are also credited …
  2. math

    We deposited 7,500 dollars into a savings account which pays 3.6 percent annual interest, compound quarterly.How long after the money is deposited will the account balance be 9,750 dollars?
  3. math

    Choi deposited $2500 in a savings account that pays 4.75% interest compounded quarterly. What will be the total amount of money in the account 15 years from the day of deposit?
  4. differential equation

    If P(t) is the amount of dollars in a savings bank account that pays a yearly interest rate of r% compounded continuously ,then dP/dt=(r/100)(P) , t in years . Assume the interest is 5% annually ,P(0)=$1000 ,and no monies are withdrawn …
  5. Business Math

    1. Lee Holmes deposited $16,700 in a new savings account at 6% interest compounded semiannually. At the beginning of year 4, Lee deposits an additional $41,700 at 6% interest compounded semiannually. At the end of year 6, what is the …
  6. Math

    (a) Themba wants to deposit a sum of money into a savings account so that he will have R30 000 in 3 years time for an overseas holiday how much money must he deposit into the account if the interest paid on the savings is 8,5% p.a …
  7. Algebra( check my answers)

    1. Juan deposited $200 in a savings account earning 3% interest over 2 years. What was the total amount of interest earned after 2 years?
  8. Lat math question for some days. Can y'all help?

    Huan deposited $850 into a college savings account earning 4.8% interest compounded annually. He also deposited $850 into a second account earning 4.8% simple interest. He made no additional deposits. After 10 years, which account …
  9. Math

    I need to see how this is answered. 1. Lauren deposited $200 into her savings account with 1% interest rate compounded annually. After 4 years her balance was $208.12. Colby deposited $200 into a savings account that earned a 2% simple …
  10. math

    Phil deposited $1,000 in a savings account. How much will he have in his account in two years if his account is compounded annually at a 2% interest rate?

More Similar Questions