How Long Will It Take For An Investment To Triple If It Is Compounded Continuously At 13
How Long Will It Take For An Investment To Triple If It Is Compounded Continuously At 13. How long to the nearest year will it take an investment to double if it is continuously compounded at 13% per year? To the nearest year, it will it take 18 years for an investment to triple, if it is continuously compounded at 6% per year.
How long will it take an investment to double in value if the interest rate is 12% compounded continuously? Substituting these values in formula. For example, $100 with a fixed rate of return of 8% will take approximately nine (72 / 8) years to grow to $200.
P = The Principal (The Investment) T = The Time In Years.
Answer provided by our tutors let. This is done continuously rather than annually, monthly or quarterly. How long will it take for an investment to double in value if it earns 5% compounded continuously?
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From the text of the exercise we have that. 15 years 2 qufstion 10 The rest is just calculator work.
Answer By Fombitz(32379) ( Show Source ):.
Take the natural log of both sides: Or, if your money is earning a 5 percent interest rate, you’ll double it in 14.4 years (72 divided by 5 equals 14.4). A 10% interest rate will double your investment in about 7 years (72 ∕ 10 = 7.2);
7 Years D.8 Years O E.
One can use it for any investment as long as it involves a fixed rate with compound interest in a reasonable range. How long, to the nearest year, will it take an investment to triple if it is continuously compounded at 13% per year? An amount invested at a 12% interest rate will double in about 6 years (72 ∕ 12 = 6).
Continuous Compounding Means The Principal Is Continually Earning Interest And The Interest Is Also Earning Interest.
A = p ( 1 + r m) m t \pmb {a=p\left (1+\frac {r} {m}\right)^ {mt}} a = p ( 1 + m r. How long does it take for an investment to triple in value if it is invested at 6 compounded monthly? So let's say that i want to invest some money when they want to see, um, how long it's gonna take it for it to triple if i have an interest rate of 6% compounded monthly.
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