Calculus 10th Edition

Published by Brooks Cole
ISBN 10: 1-28505-709-0
ISBN 13: 978-1-28505-709-5

Chapter 6 - Differential Equations - 6.2 Exercises - Page 413: 39

Answer

$$\eqalign{ & {\text{Time to double: }}11.55{\text{ years}} \cr & {\text{Amount after 10 years: }}\$ 7288.48 \cr} $$

Work Step by Step

$$\eqalign{ & {\text{Initial Investment: \$ 4000}} \to {A_0} = 4000 \cr & {\text{Annual Rate: 6% }} \to r = 0.06 \cr & A = {A_0}{e^{rt}}{\text{ }}\left( {\bf{1}} \right){\text{, }}t{\text{ in years}} \cr & {\text{The time to double is }}A = 2{A_0} \cr & A = 2\left( {4000} \right) \cr & A = 8000 \cr & {\text{Substituting known values into }}\left( {\bf{1}} \right) \cr & 8000 = 4000{e^{0.06t}} \cr & {e^{0.06t}} = 2 \cr & \ln {e^{0.06t}} = \ln 2 \cr & 0.06t = \ln 2 \cr & t = \frac{{\ln 2}}{{0.06}} \cr & t = 11.55{\text{ years}} \cr & \cr & {\text{*The amount after 10 years is:}} \cr & A = {A_0}{e^{rt}} \cr & A = \$ 4000{e^{0.06\left( {10} \right)}} \cr & A = \$ 7288.48 \cr} $$
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