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##### 19. Please solve for both. Round to two decimal places as needed. Thanks!

 Algebra Tutor: None Selected Time limit: 0 Hours

Apr 27th, 2015

a) compounded monthly

A = P(1 + r/n) ^ nt

take principal as x then the final amount will be 2x (double)

2x= x( 1+ 0.02/ 12 ) ^ 12*t

2= (1. 001666)^12t

apply log

log 2 = 12t log 1.001666

b)  compounded monthly

A = Pert

take principal as x then the final amount will be 2x (double)

2x = x e^ 0.02 * t

2=  e^ 0.02 * t

apply ln on both sides...

t = ln 2/ 0.02                                    (ln e = 1 )

=  34.65 years.......................................................

hope you understood...please message if you have any doubts...thank you

Apr 26th, 2015

I believe you did compounded monthly twice. Therefore, I am confused. Which answer is Compounded monthly and which answer is compounded continuously?

Apr 26th, 2015

oh...that is a typing mistaking

the first answer a)is compounded monthly

Apr 26th, 2015

hi...any doubts?

a)compounded monthly = 36.13 years

b)compounded continously =    34.65 years

Apr 26th, 2015

Shouldn't Monthly = 2.89 Years

and shouldnt Continuously = 2.89 Years?

Since it is talking about MONTHLY

Apr 26th, 2015

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Apr 27th, 2015
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Apr 27th, 2015
Dec 7th, 2016
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