Precalculus (6th Edition) Blitzer

Published by Pearson
ISBN 10: 0-13446-914-3
ISBN 13: 978-0-13446-914-0

Chapter 3 - Section 3.4 - Exponential and Logarithmic Equations - Exercise Set - Page 491: 145

Answer

After 36 years.

Work Step by Step

$ A=P(1+r)^{t}$ is the balance after investing the amount P for t years at a rate r, and compounding is done once a year. $ A_{1}=4000(1+0.03)^{t},\quad A_{2}=2000(1+0.05)^{t}$. We want $t$ for which $ A_{1}=A_{2}.$ $ 4000(1.03)^{t}=2000(1.05)^{t}\qquad $ ... $/\displaystyle \times\frac{1}{2000\cdot(1.03)^{t}}$ $ 2=(\displaystyle \frac{1.05}{1.03})^{t}\qquad $ ... $/\log(...)$ $\displaystyle \log 2=t\log\frac{1.05}{1.03}$ $ t=\displaystyle \frac{\log 2}{\log\frac{1.05}{1.03}}\approx 36.0425425489$
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