Posted by Katharine on .
fiona invested $1000 at 6% compounded continuously. at the same time, maria invested $1100 at 6% compounded daily. how long will it take for their investments to be equal in value?
step by step please!
1000e^.06x = 1100(1+.06/365)^(365x)
x = 202,800 years
as for solving the equation, there's no useful symbolic method. Some kind of numeric approximation will probably be needed.
The time seems rather large. Probably because daily compounding is very nearly continuous, and 1100 gets a pretty big head start over 1000.
You sure the interest rates are the same?