Question

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?

Answer #1

The formula for continuously compounded interest is given by:

where,

A=Amount

P=Principal

e=Mathematical constant e

r=rate of interest

t=Time in years

According to question;

P=$6000, A=12000, r=8%

Therefore it will take 8.664 years for theprincipal investment of $6000 to grow to $12,000.

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.

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 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 for a $4000 investment to grow to $5000 at
an annual rate of 12%, compounded semiannually? Assume that no
withdrawals are made. Do not round any intermediate computations,
and round your answer to the nearest hundredth.

How many years will it take for a $ 2,000 investment, at 8%
interest compounded semi-annually, to grow to $ 12,000. In that
interest, how many years will it take for the investment to reach
the amount of $ 12,000?

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

How long would it take to triple your money if the interest rate
was:
5% compounded yearly
5% compounded monthly
5% compounded weekly
5% compounded continuously

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?

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