A financial institution advertises that it will triple your money in 11 years. Assuming interest is compounded continuously, what is the annual interest rate?
What I have for a base equation is:
P=Poe^i*T
Your help is greatly appreciated. Thanks in advance
2007-04-28 17:01:25 · 3 answers · asked by CasualCanadian 2 in Science & Mathematics ➔ Mathematics
we want to know when P = 3Po
3 Po = Po e^(i11)
3 = e ^ (11i)
ln 3 = 11 i
i = (ln3) / 11
i = .0998738...
rounding ===> 10%
2007-04-28 17:07:57 · answer #1 · answered by Anonymous · 0⤊ 0⤋
You are almost there!!
P/Po = 3 and T = 11 years, so
3 = exp(11 i) Now take natural logs of both sides and..... 1.1 = 11 i (appx) and i = 10%(appx)
2007-04-28 17:08:37 · answer #2 · answered by cattbarf 7 · 0⤊ 0⤋
If funds interior the account earns 6% activity compounded continuously, how plenty would be interior the account 35 years later, once you retired at age sixty 5? ------- this may well be a non-end annuity at a non-end annual activity fee. answer: destiny fee = $238,872.33 -------------------- --------------------- How various of the suitable volume is activity? --------------------------------- activity = destiny fee of investment - finished volume invested answer: $168,872.33
2016-12-10 14:15:48 · answer #3 · answered by deparvine 4 · 0⤊ 0⤋