Using the continuous compounding equation, if someone invested $5,000 at an interest rate of 3.5%, and someone else invested $5,250 at an interest rate of 3.2%, how long would it take for both accounts to have the same value? What value would both accounts have?

Therefore after 16.26 unit of time, both accounts have same balance.

The both account have $8,834.43.

Explanation:

Formula for continuous compounding :

P(t)=  value after t time

= Initial principal

r= rate of interest annually

t=length of time.

Given that, someone invested $5,000 at an interest 3.5% and another one  invested $5,250 at an interest 3.2% .

Let after t year the both accounts have same balance.

For the first case,

P= $5,000, r=3.5%=0.035

For the second case,

P= $5,250, r=3.5%=0.032

According to the problem,

Taking ln both sides

Therefore after 16.26 unit of time, both accounts have same balance.

The account balance on that time is

              =$8,834.43

The both account have $8,834.43.

c

explanation: