Question:
How long will it take a {eq}\$300{/eq} investment to be worth {eq}\$800{/eq}, if it is continuously compounded at {eq}12\%{/eq} per year?
Compound interest:
Compound interest is a method that is used in the financial field. It is an interest on the principal amount and previous interest amount for the next calculation of the interest. The following formula can be used to determine the compounded amount.
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Compound Interest Calculator - NerdWalletBest ways for beginners to invest moneyAmazon’s $191 Billion Jump Sets Record for Market Value GainHow long will it take to double your money if the interest rate is 10% compounded semi annually? (Round to 2 decimal places.) | Homework.Study.com{eq}A = P{e^{rt}}{/eq}
Where
{eq}\begin{align*}A &= Final\,amount\\P &= Initial\,amount\\r &= Interest\,rate\\t &= Time\end{align*}{/eq}
See Also
MATH 1830Answer and Explanation:1
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Given data
- The final amount is {eq}A = \$ 800.{/eq}
- The initial amount is {eq}P = \$ 300.{/eq}
- The interest rate is {eq}r = 12\% .{/eq}
The...
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