Time to Double or Triple an Investment The formula t = ln m n ln ( 1 + r n ) can be used to find the number of years t required to multiply an investment m times when r is the per annum interest rate compounded n times a year. (a) How many years will it take to double the value of an IRA that compounds annually at the rate of 6 % ? (b) How many years will it take to triple the value of a savings account that compounds quarterly at an annual rate of 5 % ? (c) Give a derivation of this formula.
Time to Double or Triple an Investment The formula t = ln m n ln ( 1 + r n ) can be used to find the number of years t required to multiply an investment m times when r is the per annum interest rate compounded n times a year. (a) How many years will it take to double the value of an IRA that compounds annually at the rate of 6 % ? (b) How many years will it take to triple the value of a savings account that compounds quarterly at an annual rate of 5 % ? (c) Give a derivation of this formula.
Solution Summary: The author explains how the formula can be used to calculate the number of years required to multiply an investment m times the per annum interest rate compounded n times a year.
Time to Double or Triple an Investment
The formula
can be used to find the number of years
required to multiply an investment
times when
is the per annum interest rate compounded
times a year.
(a) How many years will it take to double the value of an IRA that compounds annually at the rate of
?
(b) How many years will it take to triple the value of a savings account that compounds quarterly at an annual rate of
?
i attached the question and the way i solved it, i believe i made an error, could you point it out for me because the correct answer is 3pi/2correct answer is D, please see both attached photos
Question 3 and 4
could you explain this using stoke theoremi already circled the correct answer
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