7. Time to Double or Triple an investment The formula sbni od bilar In m t = Goianol of T n In 1 + | can be used to find the number of years t required to multiply an investment m times when r is the per annum interest rate compounded n times a year. (a) How many years will it take to double the value of an IRA that compounds annually at the rate of 6%? (b) How many years will it take to triple the value of a savings account that compounds quarterly at an annual sigge rate of 5%? (c) Give a derivation of this formula.

7. Time to Double or Triple an investment The formula sbni od bilar In m t = Goianol of T n In 1 + | can be used to find the number of years t required to multiply an investment m times when r is the per annum interest rate compounded n times a year. (a) How many years will it take to double the value of an IRA that compounds annually at the rate of 6%? (b) How many years will it take to triple the value of a savings account that compounds quarterly at an annual sigge rate of 5%? (c) Give a derivation of this formula.

College Algebra

1st Edition

ISBN:9781938168383

Author:Jay Abramson

Publisher:Jay Abramson

Chapter6: Exponential And Logarithmic Functions

Section6.1: Exponential Functions

Problem 56SE: The annual percentage yield (APY) of an investmentaccount is a representation ofthe actual interest...

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