PRECALCULUS W/LIMITS:GRAPH.APPROACH(HS)
PRECALCULUS W/LIMITS:GRAPH.APPROACH(HS)
8th Edition
ISBN: 9781337904285
Author: Larson
Publisher: CENGAGE L
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Unitary Method
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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.
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Question
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Chapter 3.4, Problem 142E
To determine

Is the time required for a continuously compoundedinvestment to quadruple twice as long as the time required for it to double? Give a reason for your answer and verify your answer algebraically.

Expert Solution & Answer
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Answer to Problem 142E

The time required for a continuously compounded investment to quadruple is twice as long as the time required for it to double.

Explanation of Solution

Concept used:

Continuous compound interest formula- A=Pert , where,

A = Final amount after t years,

P = Principal amount,

r = Annual interest rate in decimal form.

Calculation:

Let us assume that the principal amount is P and annual interest rate is r.

The double of principal would be 2P.

Upon substituting our given values in continuous compound interest formula, we will get:

  A=Pert (Continuous compound interest formula)2P=Pert (Substituting A=2P)2PP=PertP (Dividing both sides by P)2=ertert=2 (Switching sides)ln(ert)=ln(2) (Taking natural log on both sides)rtln(e)=ln(2) (Using property ln(xm)=mln(x))rt=ln(2) (Using property ln(e)=1)t=ln(2)r

The quadruple of principal would be 4P.

  A=Pert (Continuous compound interest formula)4P=Pert (Substituting A=4P)4PP=PertP (Dividing both sides by P)4=ertert=22 (Switching sides)ln(ert)=ln(22) (Taking natural log on both sides)rtln(e)=2ln(2) (Using property ln(xm)=mln(x))rt=2ln(2) (Using property ln(e)=1)t=2ln(2)r

Upon comparing both times, we will get:

  Quadrupling timeDoubling time=2ln(2)rln(2)r=2ln(2)ln(2)=21

Therefore, the time required for a continuously compounded investment to quadruple is twice as long as the time required for it to double.

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Chapter 3.4, Problem 141E
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Chapter 3.4, Problem 143E

Chapter 3 Solutions

PRECALCULUS W/LIMITS:GRAPH.APPROACH(HS)

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Prob. 32ECh. 3.6 - Prob. 33ECh. 3.6 - Prob. 34ECh. 3.6 - Prob. 35ECh. 3.6 - Prob. 36ECh. 3.6 - Prob. 37ECh. 3.6 - Prob. 38ECh. 3.6 - Prob. 39ECh. 3.6 - Prob. 40ECh. 3.6 - Prob. 41ECh. 3.6 - Prob. 42ECh. 3.6 - Prob. 43ECh. 3.6 - Prob. 44ECh. 3.6 - Prob. 45ECh. 3.6 - Prob. 46ECh. 3 - Prob. 1CRCh. 3 - Prob. 2CRCh. 3 - Prob. 3CRCh. 3 - Prob. 4CRCh. 3 - Prob. 5CRCh. 3 - Prob. 6CRCh. 3 - Prob. 7CRCh. 3 - Prob. 8CRCh. 3 - Prob. 9CRCh. 3 - Prob. 10CRCh. 3 - Prob. 11CRCh. 3 - Prob. 12CRCh. 3 - Prob. 13CRCh. 3 - Prob. 14CRCh. 3 - Prob. 15CRCh. 3 - Prob. 16CRCh. 3 - Prob. 17CRCh. 3 - Prob. 18CRCh. 3 - Prob. 19CRCh. 3 - Prob. 20CRCh. 3 - Prob. 21CRCh. 3 - Prob. 22CRCh. 3 - Prob. 23CRCh. 3 - Prob. 24CRCh. 3 - Prob. 25CRCh. 3 - Prob. 26CRCh. 3 - Prob. 27CRCh. 3 - Prob. 28CRCh. 3 - Prob. 29CRCh. 3 - Prob. 30CRCh. 3 - Prob. 31CRCh. 3 - Prob. 32CRCh. 3 - Prob. 33CRCh. 3 - Prob. 34CRCh. 3 - Prob. 35CRCh. 3 - Prob. 36CRCh. 3 - Prob. 37CRCh. 3 - Prob. 38CRCh. 3 - Prob. 39CRCh. 3 - Prob. 40CRCh. 3 - Prob. 41CRCh. 3 - Prob. 42CRCh. 3 - Prob. 43CRCh. 3 - Prob. 44CRCh. 3 - Prob. 45CRCh. 3 - Prob. 46CRCh. 3 - Prob. 47CRCh. 3 - Prob. 48CRCh. 3 - Prob. 49CRCh. 3 - Prob. 50CRCh. 3 - Prob. 51CRCh. 3 - Prob. 52CRCh. 3 - Prob. 53CRCh. 3 - Prob. 54CRCh. 3 - Prob. 55CRCh. 3 - Prob. 56CRCh. 3 - Prob. 57CRCh. 3 - Prob. 58CRCh. 3 - Prob. 59CRCh. 3 - Prob. 60CRCh. 3 - Prob. 61CRCh. 3 - Prob. 62CRCh. 3 - Prob. 63CRCh. 3 - Prob. 64CRCh. 3 - Prob. 65CRCh. 3 - Prob. 66CRCh. 3 - Prob. 67CRCh. 3 - Prob. 68CRCh. 3 - Prob. 69CRCh. 3 - Prob. 70CRCh. 3 - Prob. 71CRCh. 3 - Prob. 72CRCh. 3 - Prob. 73CRCh. 3 - Prob. 74CRCh. 3 - Prob. 75CRCh. 3 - Prob. 76CRCh. 3 - Prob. 77CRCh. 3 - Prob. 78CRCh. 3 - Prob. 79CRCh. 3 - Prob. 80CRCh. 3 - Prob. 81CRCh. 3 - Prob. 82CRCh. 3 - Prob. 83CRCh. 3 - Prob. 84CRCh. 3 - Prob. 85CRCh. 3 - Prob. 86CRCh. 3 - Prob. 87CRCh. 3 - Prob. 88CRCh. 3 - Prob. 89CRCh. 3 - Prob. 90CRCh. 3 - Prob. 91CRCh. 3 - Prob. 92CRCh. 3 - Prob. 93CRCh. 3 - Prob. 94CRCh. 3 - Prob. 95CRCh. 3 - Prob. 96CRCh. 3 - Prob. 97CRCh. 3 - Prob. 98CRCh. 3 - Prob. 99CRCh. 3 - Prob. 100CRCh. 3 - Prob. 101CRCh. 3 - Prob. 102CRCh. 3 - Prob. 103CRCh. 3 - Prob. 104CRCh. 3 - Prob. 105CRCh. 3 - Prob. 106CRCh. 3 - Prob. 107CRCh. 3 - Prob. 108CRCh. 3 - Prob. 109CRCh. 3 - Prob. 110CRCh. 3 - Prob. 111CRCh. 3 - Prob. 112CRCh. 3 - Prob. 113CRCh. 3 - Prob. 114CRCh. 3 - Prob. 115CRCh. 3 - Prob. 116CRCh. 3 - Prob. 117CRCh. 3 - Prob. 118CRCh. 3 - Prob. 119CRCh. 3 - Prob. 120CRCh. 3 - Prob. 121CRCh. 3 - Prob. 122CRCh. 3 - Prob. 123CRCh. 3 - Prob. 124CRCh. 3 - Prob. 125CRCh. 3 - Prob. 126CRCh. 3 - Prob. 1CTCh. 3 - Prob. 2CTCh. 3 - Prob. 3CTCh. 3 - Prob. 4CTCh. 3 - Prob. 5CTCh. 3 - Prob. 6CTCh. 3 - Prob. 7CTCh. 3 - Prob. 8CTCh. 3 - Prob. 9CTCh. 3 - Prob. 10CTCh. 3 - Prob. 11CTCh. 3 - Prob. 12CTCh. 3 - Prob. 13CTCh. 3 - Prob. 14CTCh. 3 - Prob. 15CTCh. 3 - Prob. 16CTCh. 3 - Prob. 17CTCh. 3 - Prob. 18CTCh. 3 - Prob. 19CTCh. 3 - Prob. 20CTCh. 3 - Prob. 21CTCh. 3 - Prob. 22CTCh. 3 - Prob. 23CTCh. 3 - Prob. 24CTCh. 3 - Prob. 25CTCh. 3 - Prob. 26CTCh. 3 - Prob. 27CTCh. 3 - Prob. 28CTCh. 3 - Prob. 29CTCh. 3 - Prob. 30CTCh. 3 - Prob. 1STPCh. 3 - Prob. 2STPCh. 3 - Prob. 3STPCh. 3 - Prob. 4STPCh. 3 - Prob. 5STPCh. 3 - Prob. 6STPCh. 3 - Prob. 7STPCh. 3 - Prob. 8STPCh. 3 - Prob. 9STPCh. 3 - Prob. 10STPCh. 3 - Prob. 11STPCh. 3 - Prob. 12STPCh. 3 - Prob. 13STPCh. 3 - Prob. 14STPCh. 3 - Prob. 15STPCh. 3 - Prob. 16STPCh. 3 - Prob. 17STPCh. 3 - Prob. 18STPCh. 3 - Prob. 19STPCh. 3 - Prob. 20STPCh. 3 - Prob. 21STPCh. 3 - Prob. 22STPCh. 3 - Prob. 23STPCh. 3 - Prob. 24STPCh. 3 - Prob. 25STPCh. 3 - Prob. 26STP
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