calculate the number of years for an investment of $1000 to double at each rate, A) 7.2%, compounded annually B) 7.07% compounded sem annual? i dont know how to make the equation, so confused...please help
2007-02-05 07:46:17 · 2 answers · asked by t l 1 in Education & Reference ➔ Homework Help
i cant ask anyone in my class because i dont go to school, im teaching myself, math30, so if anyone can help, i would really like it
2007-02-05 07:56:24 · update #1
one more question, c) 6.97% compounded monthly
2007-02-05 08:05:32 · update #2
Google "Logarithms Help" and you'll probably get an answer. Or ask someone in your class.
2007-02-05 07:55:19 · answer #1 · answered by km43dragon 3 · 0⤊ 0⤋
A: Your question is:
2000 = 1000 * (1 + .072)^n
2 = (1.072)^n
Take the natural log of both sides, and you'll get:
ln 2 = n ln 1.072
Evaluate those expressions, then solve for n. You should get a number around 10.
B reduces to 2 = (1 + .03535)^(2n)
Solve it in the same way.
2007-02-05 16:00:32 · answer #2 · answered by John T 6 · 0⤊ 0⤋