. Time to Reach an Investment Goal The formula In A In P r can be used to find the number of years t required for an investment P to grow to a value A when compounded continuously at an annual rate r. (a) How long will it take to increase an initial investment of $1000 to $8000 at an annual rate of 10%? (b) What annual rate is required to increase the value of a $2000 IRA to $30,000 in 35 years? (c) Give a derivation of this formula.
. Time to Reach an Investment Goal The formula In A In P r can be used to find the number of years t required for an investment P to grow to a value A when compounded continuously at an annual rate r. (a) How long will it take to increase an initial investment of $1000 to $8000 at an annual rate of 10%? (b) What annual rate is required to increase the value of a $2000 IRA to $30,000 in 35 years? (c) Give a derivation of this formula.
Chapter5: Exponential And Logarithmic Functions
Section5.4: Exponential And Logarithmic Equations
Problem 97E
Related questions
Question
snip
Transcribed Image Text:. Time to Reach an Investment Goal The formula
In A In P
r
can be used to find the number of years t required for an
investment P to grow to a value A when compounded
continuously at an annual rate r.
(a) How long will it take to increase an initial investment of
$1000 to $8000 at an annual rate of 10%?
(b) What annual rate is required to increase the value of a
$2000 IRA to $30,000 in 35 years?
(c) Give a derivation of this formula.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.Recommended textbooks for you
Trigonometry (MindTap Course List)
Trigonometry
ISBN:
9781337278461
Author:
Ron Larson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Trigonometry (MindTap Course List)
Trigonometry
ISBN:
9781337278461
Author:
Ron Larson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Functions and Change: A Modeling Approach to Coll…
Algebra
ISBN:
9781337111348
Author:
Bruce Crauder, Benny Evans, Alan Noell
Publisher:
Cengage Learning
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning