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Solving Logarithmic Equations (Word Problems)

Solving Logarithmic Equations ( word problems ) Example 1 INVESTMENT Mr. and Mrs. Mitchell are saving for their daughter s college education. They invest $10,000 in an account that pays interest compounded continuously with the goal to have twice that amount in the account in ten years. a. Will the Mitchell s reach their investment goal in ten years? Find the doubling time for the Mr. and Mrs. Mitchell s investment. For continuously compounded interest, the constant k is the interest rate, written as a decimal. t = ln 2k = ln The decimal for is years Use a calculator. Ten years is not enough time for their investment to double. b. What interest rate is required for an investment with continuously compounded interest to double in 10 years? t = ln 2k 10 = ln 2k k = ln 210 Solve for k.

Solving Logarithmic Equations (Word Problems) Example 1 INVESTMENT Mr. and Mrs. Mitchell are saving for their daughter’s college education. They invest $10,000 in an account that pays 4.5% interest compounded continuously with the goal to have twice that amount in the account in ten years. a.

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