How long will it take to triple an initial investment earning 4.75% annual interest that is compounded continuously?
What amount presently must be invested earning 5.25% compounded daily for the next 10 years so that it will grow up to be worth $25,000 10 years from now?

[tex]1. F= Pe^{ni} \\ \\3P= Pe^{ni} \\ \\3 = e^{0.0475n} \\ \\ln(3) = ln(e^{0.0475n}) \\ \\ln(3)= 0.0475n \\ \\n= \frac{ln3}{0.0475}=23.18 [/tex]

[tex]2.F=P(1+ \frac{i}{t})^{tn} \\ \\25000 = P(1+\frac{0.0525}{360})^{360*10} \\ \\ P = \frac{25000}{(1+\frac{0.0525}{360})^{360*10}} =19470[/tex]

Answer Link

How long will it take to triple an initial investment earning 4.75% annual interest that is compounded continuously? What amount presently must be invested earning 5.25% compounded daily for the next 10 years so that it will grow up to be worth $25,000 10 years from now?

Respuesta :

Otras preguntas

How long will it take to triple an initial investment earning 4.75% annual interest that is compounded continuously?
What amount presently must be invested earning 5.25% compounded daily for the next 10 years so that it will grow up to be worth $25,000 10 years from now?