Question

How long will it take a principal investment of $6000 to grow to $12,000 if the...

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?

Homework Answers

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.

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
Use logarithms to solve the following problems 1. How long will it take $12,000 to grow...
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?
How long will it take an investment of $6000 to double if the investment earns interest...
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...
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...
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...
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
Find the time required for an investment of $ 5000 to grow to $ 6000 at...
Find the time required for an investment of $ 5000 to grow to $ 6000 at an interest rate of 7.5 percent per year, compounded quarterly. Round to 2 decimal places. t =
How long will it take for a $4000 investment to grow to $5000 at an annual...
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,...
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?
Suppose we have an investment that earns interest compounded continuously and it takes 12 years for...
Suppose we have an investment that earns interest compounded continuously and it takes 12 years for an initial investment of 20,000 to grow to 80,000 under this investment. How long does it take for the same initial investment of 20,000 to grow to 60,000?
How long will it take an RRSP to grow to $730,000, if it takes in month-end...
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)
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT