Question
Suppose that $1,000 is invested at 5% interest compounded continuously. Use the formula A = Pe rt . (a) How long (to the nearest day)
Suppose that $1,000 is invested at 5% interest compounded continuously. Use the formula
A = Pert.
(a) How long (to the nearest day) before the value is $1,250?
years, days
(b) How long (to the nearest day) before the money doubles?
years, days
(c) What is the interest rate (compounded continuously and rounded to the nearest tenth of a percent) if the money doubles in 5 years?
%
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Foundations Of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
11th Canadian Edition
1259024970, 978-1259265921
