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.

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 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

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 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?

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 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)

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