If an investment of $5,000 is made in an account returning 2% p.a. then how long will it take for the account to have $10,000 if: (a) Interest is compounded monthly? (12 times a year) (b) Interest is compounded continuously? Give your answers rounded to two decimal places.

If an investment of $5,000 is made in an account returning 2% p.a. then how long will it take for the account to have $10,000 if: (a) Interest is compounded monthly? (12 times a year) (b) Interest is compounded continuously? Give your answers rounded to two decimal places.

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 3CE

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If an investment of $5,000 is made in an account returning 2% p.a.
then how long will it take for the account to have $10,000 if:
(a) Interest is compounded monthly? (12 times a year)
(b) Interest is compounded continuously?
Give your answers rounded to two decimal places.

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