1. $30,000 is invested at a compounded yearly interest rate of 6%, with the interest compounded constantly. (a) How long do you think it will take for the value of this original investment to double? (b) How long do you think it will take for this initial investment to quadruple in value? (c) How long do you think it will take for this initial investment to double in value? (d) Is there a pattern here? (d) Can you spot the pattern? How long will it take to achieve five times the starting sum? What if you get seven times the amount you started with? etc.

Q: 3. Suppose an investment is expected to generate income at the rate of R(t) = 200,000 dollars/year…

A:

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A: A = $1,250 P = $1,000 r = 4% = 0.04

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