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 = Pe^{rt}

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

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

oh...that is a typing mistaking

the first answer a)is compounded monthly

second answer b)compounded contionously....

hi...any doubts?

answers are

a)compounded monthly = 36.13 years

b)compounded continously = 34.65 years

Shouldn't Monthly = 2.89 Years

and shouldnt Continuously = 2.89 Years?

Since it is talking about MONTHLY

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