Info for Question #3 from Question #2

Question # 3

Date [ Page 1 2) Given Am want depurited an child's birth = P = $1700 Annua int west uempounded uentinously u 2% We need to find the time when am eunt will be A = $3000 The d farmwa fun continous componding given by :- - A = Port * to.042) - To.042) & 3000 17ooe 1o.0842) 3ooo 1700 1.765 = In 17.765 o ouatlne In 1.765 = 0.042t 0.56.8 0.042t 0.568 t o our 13.524 = t Exart and wen 13.524 y caus ans wel = 13.5 year Approximate Hence, after app Nurmately 13 . 5 years there acceurt || be $ 3000 in the 2) Interest. (Revisiting Section 3.1, Exercises 4 and 5.) On the day of a child's birth, a deposit of $1700 is made in a trust fund that pays 4.2% annual interest compounded continuously. Assuming there are no further deposits or withdrawals, how old will the child be when there is $3000 in the account? Give both an exact answer (which may look ugly) and an approximate answer rounded off to the nearest tenth of a year. (Calculator) (A-C) 3) Interest. Repeat Exercise 2, except find how old the child will be when there is $3400 in the account. Hint: Use the Doubling Time Formula discussed in this section. Compare your answer here to your answer in Exercise 2. (Calculator) (A-C)