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gfoste00

  • 3 years ago

How long will it take for an investment of $3000 to double in value if the interest rate is 7.5% per year, compounded continuously? (Round your answer to two decimal places.)

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  1. gandalfwiz
    • 3 years ago
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    Vn=Or(1+or-rate)n Values after n years equals the original value times (1 +or- the rate)to the n years power

  2. gandalfwiz
    • 3 years ago
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    6000=3000(1+.075)n

  3. gandalfwiz
    • 3 years ago
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    solve for n and that's your answer

  4. gfoste00
    • 3 years ago
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    is it 2790.6977 ?

  5. gfoste00
    • 3 years ago
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    cause that doesnt make sense

  6. gfoste00
    • 3 years ago
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    ?

  7. 101Ryan101
    • 3 years ago
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    Actually, this is the equation because it's compounded continuously... 6000 = 3000e^(.075t) divide both sides by the 3000 and then take the natural log to get rid of the e. ln(2000) = .075t t = ln(2000)/.075 ~ 101.3453661... 101.35 years (rounded)

  8. gfoste00
    • 3 years ago
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    ah i see thanks Ryan!

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