The document is a lecture on exponential and logarithmic functions containing sample exercises. It discusses an investment of $200,000 earning 8% annual interest compounded continuously. The exponential function for the investment amount over time t is given. It is also stated that the investment will grow to $384,000 after 5 years and $676,480 after 10 years. Another exercise asks to determine the length of time required for the investment to double and quadruple in value.
7. Question # 1 An investment of $200,000 is made which earns interest at the rate of 8 percent per year. If interest is compounded continuously: (a) Determine the exponential function which states the compound amount as a function of years of investment t . (b) What will the $200,000 grow to if it is invested for 5 years? 10 years? Ans. a) The exponential function is as follows b)
8. Question # 3 In Exercise 1, determine the length of time required for the investment to double in value. ( To quadruple self )