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A man with ​$30 ,000 to invest decides to diversify his investments by placing ​$15,000 in an account that earns 6.2​% compounded continuously and ​$15,000 in an account that earns 7.4​% compounded annually. Use graphical approximation methods to determine how long it will take for his total investment in the two accounts to grow to ​$45,000.

Guest Mar 4, 2017
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 #1
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We are looking for the intersection of

 

y = 45000         and

 

y = 15000 [ (1.074)^t  + e^(.062t) ]

 

Here's a graph : https://www.desmos.com/calculator/zmejtzneea

 

The time is about 6 years....

 

 

cool cool cool

CPhill  Mar 4, 2017
 #2
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Algebraic solution of your problem gives the number of years as =6.07329856042 years.

Guest Mar 5, 2017

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