# Math

How long will it take for \$2,000 to double if it is invested at 7% annual interest compounded 3 times a year? Enter in exact calculations or round to 3 decimal places.
It will take years to double.
How long will it take if the interest is compounded continuously?
Compounded continuously, it would only take years.

1. 👍 0
2. 👎 0
3. 👁 268
1. double ... 2 = [1 + (.07 / 3)]^(3 y) ... ln(2) = 3 y ln[1 + (.07 / 3)]
... solve for y

continuously ... 2 = e^(.07 y) ... ln(2) = .07 y

1. 👍 0
2. 👎 0
2. Compounded three times a year? How unusual, anyway ....
1(1 + .07/3)^n = 2, where n is the number of 4 month periods
1.023333...^n = 2
n log 1.023333.... = log2
n = log 2/log 1.02333.. = .... periods.

the \$2000 has nothing to with the question.

for continuous compounding:
e^.07t = 2
.07t = ln 2
etc.

1. 👍 0
2. 👎 0
3. I found the answer 10.017
and the compound continuous answer is 99.02

1. 👍 0
2. 👎 0

## Similar Questions

A women has \$500,000 invested in two rental properties. One yields an annual return of 14% on her investment, and the other returns 9% per year on her investment. Her total annual return from the two investments is \$52,000. How

asked by bridget on September 20, 2011
2. ### Math

Larry Mitchell invested part of his \$27,000 advance at 5% annual simple interest and the rest at 2% annual simple interest. If his total yearly interest from both accounts was \$720â€‹, find the amount invested at each rate

asked by Jimmy on November 8, 2017
3. ### Math

You invested \$14,000 in two accounts paying 5% and 9% annual interest, respectively. If the total interest earned for the year was \$820, how much was invested at each rate?

asked by Bob on September 4, 2012
4. ### math

if \$9,000 is to be invested, part at 13% and the rest at 8% simple interest , how much should be invested at each rate so that the total annual return will be the same as \$9,000 invested at 9% set up as a system of linear equation

asked by jota on May 6, 2012
5. ### pre calculus

A sum of \$5000 is be invested in a bank. if the annual interest is 10% and compounded monthly, how long will it take for the original investment to double.

asked by Raju on February 8, 2014
1. ### algebra

Larry Mitchel invested part of his \$32,000 advance at 7% annual simple interest and the rest at 6% annual simple interest. If this total yearly interest from both accounts was \$2,050, find the amount invested at each. The amount

asked by lisa on August 27, 2014

A man has \$210,000 invested in three properties. One earns 12%, one 10% and one 8%. His annual income from the properties is \$20,100 and the amount invested at 8% is twice that invested at 12%. How much is invested in each

asked by James on November 30, 2014
3. ### math

An investment of \$3,000 is made at an annual simple interest of 5%. How much additional money must be invested at an annual simple interest rate of 8%, so that the total annual interest earned is 7.5 of the original amount that