Question

Investing. How many years will it take $9,000 to grow to $16,700 if it is invested...

Investing. How many years will it take $9,000 to grow to $16,700 if it is invested at 3% ​(A) compounded​ quarterly? ​(B) compounded​ continuously?

Homework Answers

Answer #1

A) Future Value = Present Value * (1+Rate of Interest)^Time

16,700 = 9000 * (1+3%/4) ^Time

16,700 / 9,000 = 1.0075 ^Time

Let time be n years

Taking log on both sides,

log ( 16700/9000) = n log(1.0075)

n =  log ( 16700/9000) / log(1.0075)

= 82.73 quarters

Time = 82.73/4

= 20.68 years

Answer = 20.68 Years

--------

B)Future Value = Present Value * e^rt

where e is 2.71828

rate = 3%

Let time = n  

16700 = 9000 * 2.71828^(0.03n)

16700/9000= 2.71828^(0.03n)

Taking log on both sides:

log (16700/9000)= 0.03 n * log 2.71828

n= 1/0.03 [ log (16700/9000) / log 2.71828]

n = 20.61 Years

Answer = 20.61 Years

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
1. How many years will it take for $480 to grow to $1,061.07 if​ it's invested...
1. How many years will it take for $480 to grow to $1,061.07 if​ it's invested at 7 percent compounded​ annually? The number of years it will take for $480 to grow to $1,061.07 at 7 percent compounded annually is ___ years? 2. At what annual interest​ rate, compounded​ annually, would $520 have to be invested for it to grow to $2,008.76 in 10 years? The annual interest​ rate, compounded​ annually, at which $520 must be invested for it to...
(Compound value solving for n​) How many years will the following​ take?a. ​$500 to grow to...
(Compound value solving for n​) How many years will the following​ take?a. ​$500 to grow to ​$1,039.50 if invested at 5 percent compounded annuallyb. ​$35 to grow to ​$53.87 if invested at 9 percent compounded annuallyc. ​$100 to grow to ​$298.60 if invested at 20 percent compounded annuallyd. ​$53 to grow to ​$78.76 if invested at 2 percent compounded annuallya. How many years will it take for ​$500 to grow to ​$1,039.50 if invested at 5 percent compounded​ annually? nothing...
Compound value solving for n​) How many years will the following​ take?a. ​$510 to grow to...
Compound value solving for n​) How many years will the following​ take?a. ​$510 to grow to ​$1,093.23 if invested at 10 percent compounded annuallyb. ​$38 to grow to ​$60.30 if invested at 8 percent compounded annuallyc. ​$110 to grow to ​$421.94 if invested at 13 percent compounded annuallyd. ​$51 to grow to ​$64.39 if invested at 6 percent compounded annually a. How many years will it take for ​$510 to grow to ​$1,093.23 if invested at 10 percent compounded​ annually?...
How many years will it take for 9,000 to grow to 84,000 if you can earn...
How many years will it take for 9,000 to grow to 84,000 if you can earn an average rate of 6.9% per year
How many years will it take $145,000 to grow to $675,000 if it is invested in...
How many years will it take $145,000 to grow to $675,000 if it is invested in an account with a quoted annual interest rate of 9% with monthly compounding of interest?
How much will $100 grow to if invested at a continuously compounded interest rate of 7.5%...
How much will $100 grow to if invested at a continuously compounded interest rate of 7.5% for 7 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) How much will $100 grow to if invested at a continuously compounded interest rate of 7% for 7.5 years? (Do not round intermediate calculation
1. How much more interest will be earned if $7000 is invested for 6 years at...
1. How much more interest will be earned if $7000 is invested for 6 years at 7% compounded continuously, instead of at 7% compounded quarterly. 2. How long does it take for an account containing $6000 to be worth $15,000 if the money is invested at 8.4% compounded monthly?
How much will $100 grow to if invested at a continuously compounded interest rate of 8.5%...
How much will $100 grow to if invested at a continuously compounded interest rate of 8.5% for 9 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) How much will $100 grow to if invested at a continuously compounded interest rate of 9% for 8.5 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
How much will $100 grow to if invested at a continuously compounded interest rate of 12%...
How much will $100 grow to if invested at a continuously compounded interest rate of 12% for 7 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future Value = How much will $100 grow to if invested at a continuously compounded interest rate of 7% for 12 years? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Future Value =
- How many years will it take for $100,000 to grow to $500,000 if it is...
- How many years will it take for $100,000 to grow to $500,000 if it is invested at an annual interest rate of 9.15%? Round to the nearest 0.01. - You are told that if you invest $5,000 per year for 35 years you will have accumulated $1,000,000. What is the annual rate of return on the latter investment? Round to the nearest 0.01%.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT