How to solve this problem using this equation P(T)=Poekt how long must $5700 be in bank at 8% compounded yearly to become $10,550.30 where P0 is the amount initially placed in savings, t is the time in yaers and P(t) is the balance after time
just plug in the numbers and solve for t
10550.30 = 5700 e^kt
hmmm. what's k?
Since the general formula is
A = P(1+r/n)^(nt)
(1+r/n)^nt = e^kt
nt ln(1+r/n) = kt
k = n ln(1+r/n)
since it's compounded annually, n=1, so
k = ln(1+r)
and we have the general formula. So, let's just use it:
10550.30 = 5700 (1+.08)^t
t = 8.0 years