# Algebra

Fiona invested \$1000 at 8% compounded continuously. At the same time Maria invested \$1100 at 8% compounded daily. How long will it take for their investments to be equal in value? Assume there are 365 days in every year. Please help I have tried everything and cannot solve this problem. If you can, please provide step by step explanations. Thank you!

1. 👍 0
2. 👎 0
3. 👁 309
1. continuously: A(t) = 1000*e^.08t
daily: A(t) = 1100(1+.08/365)^(365t)

so, when are they equal? When

1000 e^.08t = 1100(1+.08/365)^(365t)
t = 10,873 years.

continuous compounding is so close to daily compounding (1.08328% vs 1.08327%) that it takes a long time to overcome the larger starting amount.

1. 👍 0
2. 👎 0
posted by Steve

## Similar Questions

1. ### math

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!

asked by Katharine on November 27, 2012
2. ### math

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!

asked by Katharine on November 27, 2012
3. ### College Math

Fiona invested \$1100 at 8% compound comtinously. At the same time, Maria ivested \$1200 at 8% compounded daily. How long will it take for their investments to be equal in value?

asked by Anonymous on November 11, 2012
4. ### math

A.) start by calculating how long it will take you to save enough money and pay cash with your potential \$300.00/month savings, taking into account the \$1000.00 you have already saved. B.)Now imagine you have invested your

asked by sim on April 22, 2014
5. ### Algebra II

I'm pretty confused about these problems. We're learning growth and decay, but there are quite a few formulas. 1. Suppose \$500 is invested at 6% annual interest compounded twice a year. When will the investment be worth \$1000? 2.

asked by Annie on June 8, 2008
1. ### math modeling

Suppose that you invested \$1,442 at the annual rate of 4.60% compounded continuously, and your friend invested \$885 at the annual rate of 6.35% compounded quarterly. In how quarters will your friends investment exceeds yours?

asked by math on October 25, 2011
2. ### Pre-Calculus

Determine the balance A for P dollars invested at rate R compounded N times per year for T years. Round each amount to the nearest cent P= \$1000, R=3% t=10 years N=A 2=? 4=? 12=? 365=? Compounded continuously=?

asked by Juniper on April 26, 2016
3. ### Math

Can someone please double check my answers. 1. What pattern does the logarithmic function exhibit? a. y = b+a(lnx) b. y = a+b(lnx) c. y = ax+b d. y = axb I think A and B both look right..I just went with B. 2. Let f(x) = log6x and

asked by mysterychicken on June 18, 2013
4. ### math

Can someone please double check my answers. 1. What pattern does the logarithmic function exhibit? a. y = b+a(lnx) b. y = a+b(lnx) c. y = ax+b d. y = axb I think A and B both look right..I just went with B. 2. Let f(x) = log6x and

asked by mysterychicken on June 18, 2013
5. ### Calculus

Find the amount of a continuous money flow in which \$1000 per year is being invested at 5% compounded continuously for 40 years. How would I set up my equation in order to solve?

asked by Mark on April 27, 2018

More Similar Questions