Use the formulas above to determine the following: A) how long would it take an initial investment of $3000 to grow to $6000 in an account which pays 3.2% annual interest compounded monthly? B) how long would it take an initial investment of $3000 to grow to $6000 in an account which pays 2.2% interest compunded continuously? C)compare the two time periods. Which scenario would be the more profitable way to invest the $3000?
Use the formula for the following questions
Compound interest formula: A=P(1+r/n)nt
A=balance amount
P=initial principal invested
R=annual interest rate
N=number of times compounded per year
T=time in years
Countinuous compounding formula: P=P0ekt
P=balance amount
P0=initial principal invested
K=annual interest rate as a decimal
T=time in years
Use the formulas above to determine the following:
A) how long would it take an initial investment of $3000 to grow to $6000 in an account which pays 3.2% annual interest compounded monthly?
B) how long would it take an initial investment of $3000 to grow to $6000 in an account which pays 2.2% interest compunded continuously?
C)compare the two time periods. Which scenario would be the more profitable way to invest the $3000?
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