Time remaining:
19. Please solve for both. Round to two decimal places as needed. Thanks!

label Algebra
account_circle Unassigned
schedule 0 Hours
account_balance_wallet $5

Oct 17th, 2017

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

      t = 36.1302    years...................answer

           

         


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

second answer b)compounded contionously....

Apr 26th, 2015

hi...any doubts?

answers are

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

Did you know? You can earn $20 for every friend you invite to Studypool!
Click here to
Refer a Friend
...
Oct 17th, 2017
...
Oct 17th, 2017
Oct 18th, 2017
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer