Question
Asked Dec 4, 2019
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If $8500 is invested at 11.5% compounded continuously, the future value of S at any time t (in years) is given by S = 8500 e 0.115t

a)      What is the amount after 18 months?

b)     How long before the investment doubles?

 

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Expert Answer

Step 1

From the given information it is observed that P = $8500, r = 11.5% and t = 18 mont...

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18 18 months 12 year 12 months 1.5 years (a) Compute the amount after 18 months as follows Substitute t 1.5 in S 8500e0.115 S(1.5) 8500e.115(1.5) =8500e1725 10,100.31 Thus, the amount after 18 months is $10,100.31

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