Find the time necessary for $1000 to double when it is invested at rate r =7% and compounded (a) annually, (b) monthly, (c) daily, and (d) continuously
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Find the time necessary for $1000 to double when it is invested at rate r =7% and compounded (a) annually, (b) monthly, (c) daily, and (d) continuously
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a)
Given data:
The amount for compound interest is given by,
Substitute the values,
Take logarithm both sides,
Thus, at a rate of 7% compounded annually will take approximately 10.245 years to double itself.
b)
Rate per month,
Apply the formula,
Substitute the values,
Take logarithm both sides,
The number of years will be,
Thus, at an annual rate of 7% compounded monthly will take approximately 9.9366 years to double itself.
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