Use Logarithims To Solve Compounded Interest Problem
Favorites|Homepage
Subscriptions | sitemap
HOME > Mathematics > Use Logarithims To Solve Compounded Interest Problem

Use Logarithims To Solve Compounded Interest Problem

[From: ] [author: ] [Date: 11-10-04] [Hit: ]
000 to double if the investment earns interest at the rate of 8% compounded continuously? (Round your answer to two decimal places.i = ln(2) / 5 = 13.Answer (1): 13.ln(2) = 0.t = ln(2) / 0.......
1. Find the interest rate needed for an investment of $3000 to double in 5 yr if interest is compounded continuously. (Round your answer to two decimal places.)

2. How long will it take an investment of $7,000 to double if the investment earns interest at the rate of 8% compounded continuously? (Round your answer to two decimal places.)

-
5i = ln(2)
i = ln(2) / 5 = 13.86%

Answer (1): 13.86%

ln(2) = 0.08 t
t = ln(2) / 0.08 = 8.66 years

Answer (2): 8.66 years
1
keywords: Interest,Problem,Logarithims,To,Use,Compounded,Solve,Use Logarithims To Solve Compounded Interest Problem
New
Hot
© 2008-2010 http://www.science-mathematics.com . Program by zplan cms. Theme by wukong .