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3.5 Exponential and Logarithmic Models n compoundings per yearContinuous Compounding.

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Presentation on theme: "3.5 Exponential and Logarithmic Models n compoundings per yearContinuous Compounding."— Presentation transcript:

1 3.5 Exponential and Logarithmic Models n compoundings per yearContinuous Compounding

2 An investment is made in a trust fund at an annual percentage rate of 9.5%, compounded quarterly. How long will it take for the investment to double in value? Divide by P Take the ln of both sides. Move the 4t out front.

3 Do the same example using compounding continuously. 2P = Pe.095t 2 = e.095t ln 2 =.095t Time to Double for Continuous Compounding Rate needed to Double for Continuous Compounding

4 Carbon 14 C 14 has a half-life of 5,730 years. If we start with 3 grams. How many grams are left after a.1,000 years b.10,000 years Decay and Growth are modeled after the equation: A = Ce kt C = the initial amount k = rate of growth or decay t = time First, we need to find our rate k. Note: it takes 5,730 years for 1 g to become a half a g.

5 a. b.


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