Friday

July 25, 2014

July 25, 2014

Posted by **Nick** on Wednesday, February 29, 2012 at 3:45am.

Got 19 years--its wrong, can't find reason.

Thanks.

- Pre-Cal -
**drwls**, Wednesday, February 29, 2012 at 5:26amWith continuous compounding,

A = A0*e^(r*t) = 3 A0

where A0 is the inityial principle,

r is the annual interest rate (0.375%)

t is the period of investment, in years.

e^(rt) = 3

rt = ln3 = 1.099

t = 1.099/0.00375 = 293 years

That's a pretty bad investment. Worse that US long term treasuries at current rates.

**Related Questions**

Pre-Cal - This exercise is based on the following table, which lists interest ...

calculus - How long will it take an investment to triple in value if the ...

calculus - How long will it take an investment to triple in value if the ...

math - Approximately how long will it take an investment of $300 to triple, if ...

math - How long will it take for an investment of $13,000 to double if the ...

Math - If $8,500 is invested at 6% compounded continuously, how long will it ...

Math - How long it will take for an investment of 2000 dollars to double in ...

math - How long it will take for an investment of 1000 dollars to double in ...

math - marcia has $220,000 saved for her retirement. How long will it take for ...

Calculus - An investment grows ar a rate of 2.5% each year compounded ...