8. Second National Bank offers an account that earns interest at an annual rate of 7.1%, com- pounded continuously. You take advantage of this great interest rate and deposit money into this account. Your account grows to $4850.45 in three years. (a) How much did you initially deposit into this account? (Round your answer to the nearest cent.) (b) Suppose you want to go on a trip in three years and you need your deposit to grow to $6000, instead of $4850.45. If you can only afford to deposit $4000 in the account today, what interest rate do you need the bank to offer instead, so that you to have the $6000 in three years? (Round your answer to two decimal places, after writing your answer as a percentage.)

Algebra and Trigonometry (6th Edition)
6th Edition
ISBN:9780134463216
Author:Robert F. Blitzer
Publisher:Robert F. Blitzer
ChapterP: Prerequisites: Fundamental Concepts Of Algebra
Section: Chapter Questions
Problem 1MCCP: In Exercises 1-25, simplify the given expression or perform the indicated operation (and simplify,...
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Second National Bank offers an account that earns interest at an annual rate of 7.1%, compounded continuously. You take advantage of this great interest rate and deposit money into this account. Your account grows to $4850.45 in three years.

(a) How much did you initially deposit into this account?

(Round your answer to the nearest cent.)

(b) Suppose you want to go on a trip in three years and you need your deposit to grow to $6000, instead of $4850.45. If you can only afford to deposit $4000 in the account today, what interest rate do you need the bank to offer instead, so that you have the $6000 in three years? (Round your answer to two decimal places, after writing your answer as a percentage.)
Transcribed Image Text:Second National Bank offers an account that earns interest at an annual rate of 7.1%, compounded continuously. You take advantage of this great interest rate and deposit money into this account. Your account grows to $4850.45 in three years. (a) How much did you initially deposit into this account? (Round your answer to the nearest cent.) (b) Suppose you want to go on a trip in three years and you need your deposit to grow to $6000, instead of $4850.45. If you can only afford to deposit $4000 in the account today, what interest rate do you need the bank to offer instead, so that you have the $6000 in three years? (Round your answer to two decimal places, after writing your answer as a percentage.)
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