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anonymous

  • 5 years ago

John wants to invest $3000 in a savings certificate that bears an interest rate of 4% per year, compounded continuously. How long a period should he choose in order to save an amount of $5000?

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  1. anonymous
    • 5 years ago
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    ahh 1 sec getting formula

  2. anonymous
    • 5 years ago
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    I hate money problems, because I can never remember the formula :P

  3. anonymous
    • 5 years ago
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    I = PRT

  4. anonymous
    • 5 years ago
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    wait thats basic =(

  5. anonymous
    • 5 years ago
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    That's what I thought... compounding interest hurts my brain.

  6. anonymous
    • 5 years ago
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    M = P( 1 + i )n M is the final amount including the principal. P is the principal amount. i is the rate of interest per year. n is the number of years invested

  7. anonymous
    • 5 years ago
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    compound is 4 times per year

  8. anonymous
    • 5 years ago
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    N is what I'm trying to find then?

  9. anonymous
    • 5 years ago
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    5000=3000(1+.04)n

  10. anonymous
    • 5 years ago
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    right?

  11. anonymous
    • 5 years ago
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    n=1.602

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