Interest Compounded Continuously: Calculator Approximation

Problem 31 Chapter 4.5

For accounts where interest is compounded continuously, the amount A accumulated or due depends on the principle p, interest rate r, and the time t in years according to the formula A=p*e^(rt)

Find t given A=$2500 p=$1750 and r= 4.5%

Plugging known values into the formula

2500=1750*e^(.045t)
2500/1750=e^(.045t)
10/7=e^(.045t)
ln (10/7)= ln e^(.045t)
ln (10/7)= .045t
[ln(10/7)]/.045=t

Audio File: Problem 31 Calculator Approximation