Question

Use logarithms to solve the following problems

1. How long will it take $12,000 to grow to $18,000 if the investment earns interest at the rate of 2%/year compounded monthly?

2. Find the interest rate needed for an investment of $4200 to double in 6 years if interest is compounded continuously

3. How long will it take an investment of $7,000 to double if the investment earns interest at the rate of 5% compounded continuously?

Answer #1

How long will it take a principal investment of $6000 to grow to
$12,000 if the investment earns interest at the rate of 8%/year
compounded continuously?

A) Find the interest rate needed for an investment of $8,000 to
double in 14 yr if interest is compounded monthly.
B)How long will it take for an investment of $10,000 to grow to
$12,500 if the investment earns interest at the rate of 8%/year
compounded annually?
C)How long will it take for an investment of $15,000 to double
if the investment earns interest at the rate of 7%/year compounded
continuously?

How long will it take an investment of $2000 to double if the
investment earns interest at the rate of 4%/year compounded
monthly? (Round your answer to one decimal place.

How long will it take an RRSP to grow to $730,000, if it takes
in month-end contribution of $1300 and earns: (Round up the
number of contributions to the next integer.)
a.
4.3% compounded monthly?
years, month(s)
b.
6.5% compounded monthly?
years, month(s)
c.
8.3% compounded monthly?
years, month(s)
d.
9.3% compounded monthly?
years, month(s)

How long will it take you to grow your $5,000 investment in your
savings account to $12,000 for a down payment on a new sports car?
Assume you can earn 1.5% annual interest per year on your savings,
compounded monthly, and you make no further deposits into the
account.
Multiple Choice
700.81 years
58.80 years
4.90 years
63.87 years
58.40 years

How long will it take an investment of $6000 to double if the
investment earns interest at a rate of 7% per year compounded
semi-annually.

Q10a-Sometimes we need to find out long it will take money to
grow to some particular amount. For example, if a company’s sales
are growing at 10% per year, how long will it take sales to
triple?
Q10b – If you want the investment to double in 8 years, what
interest rate must it earn?
Q11a – What is the future value of a 14-year ordinary annuity
of $450 if the interest rate is 6%?
Q11b – What is the...

2. Use logarithms to solve the given equation. (Round the answer
to four decimal places.) HINT [See Example 1.] 10(1.093x + 1) =
15
3. How long, to the nearest year, will it take me to become a
millionaire if I invest $3000 at 9% interest compounded
continuously? HINT [See Example 3.] _______ yr.
4. The amount of carbon 14 remaining in a sample that originally
contained A grams is given by C(t) = A(0.999879)t where t is time
in...

An initial deposit is made of $12,000 in an account paying 4%
interest compounded continuously. a. How much will the account be
worth in 6 years? b. How long will it take the account to
double?

How long would it take for $1000 to grow to in an account paying
3.6% interest compounded monthly?

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