Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Could someone please check my work? If your savings account earns nominal interest of 20% per year. How long will it Take for your Savings

Could someone please check my work?

image text in transcribed
If your savings account earns nominal interest of 20% per year. How long will it Take for your Savings balance To Triple if The interest is continuously compounded? Let t= number of years it Takes the savings balance To Triple ter nominal interest rate be denoted by r=. 20 Given That the effective interest rate here is 3 ( or 300 %% or Triple ) , Then To findt: 3 = e rt 2 3 = .2t - 1 4 = 0.2t -> log4 = loge. at - log4 = . at log e - log4 loge =. 2t 105 4 ) loge at = = 6. 9 314 7/ 806 years . 2

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Graphical Approach To College Algebra

Authors: John E Hornsby, Margaret L Lial, Gary K Rockswold

6th Edition

0321900766, 9780321900760

More Books

Students also viewed these Mathematics questions