The exercise asks How long will it take a $6000 investment to be worth $12,000 if it is continously compounded at 7.5% per year.
The formula is A=P(1+ r/m)mt
actually the formula is A=Pe ^rt
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The exercise asks How long will it take a $6000 investment to be worth $12,000 if it is continously compounded at 7.5% per year.
The formula is A=P(1+ r/m)mt
actually the formula is A=Pe ^rt
Where did you get your formulas?
I will use A = P(1 + r)^t
12000 = 6000(1+.075)^t
2 = 1.075^t
log 2 = t log 1.075
t = (log 2)/(log 1.075) = 9.58 say 10 years
Where did you get your formulas?
I will use A = P(1 + r)^t
12000 = 6000(1+.075)^t
2 = 1.075^t
log 2 = t log 1.075
t = (log 2)/(log 1.075) = 9.58 say 10 years
2 = e^(0.075t)
(ln 2) / 0.075 = t
9.241962407 years = t
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