5. (a) How long does it take for an investment to double in value if itis invested at 8% compounded monthly?(b) How long does it take if the interest is compounded continuously?

Answered: 5. (a) How long does it take for an…

Intermediate Algebra

10th Edition

ISBN:9781285195728

Author:Jerome E. Kaufmann, Karen L. Schwitters

Publisher:Jerome E. Kaufmann, Karen L. Schwitters

Chapter11: Exponential And Logarithmic Functions

Section11.CR: Review Problem Set

Problem 56CR

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Similar questions

Suppose an investment account is opened with aninitial deposit of 10,500 earning 6.25 interest,compounded continuously. How much will theaccount be warm after 25 years?
What rate of interest to the nearest hundredth of percent is needed so that an investment of 2500 will yield 3000 in 2 years if the money is compounded annually?
An investment account with an annual interest rateof 7 was opened with an initial deposit of 4,000 Compare the values of the account after 9 yearswhen the interest is compounded annually, quarterly,monthly, and continuously.
An investment account was opened with aninitial deposit of 9,600 and earns 7.4 interest,compounded continuously. How much will theaccount be worth after 15 years?
On the day a grandchild is born, a grandparent deposits $2500 in a fund earning 7.5% interest, compounded continuously. Determine the balance in the account on the grandchild’s 25th birthday.
Suppose that $12,000 is invested in a saving account paying 5.6% interest per year. (a)Write the formula for the amount in the account after t years if interest is compounded monthly. (b)Find the amount in the after 3 years if interest is compounded daily. (c)How long will it take for the amount in the account to grow to $20,000 if interest iscompounded continuously?
Jerome invests $18,000 at age 17. He hopes the investments will be worth $30,000 when he turns 26. If the interest compounds continuously, approximately what rate of growth will he need to achieve his goal? Is that a reasonable expectation?

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5. (a) How long does it take for an investment to double in value if it s invested at 8% compounded monthly? b) How long does it take if the interest is compounded continuously?