`r = 5%` Find the time necessary for $1000 to double when it is invested at a rate of r compounded (a) anually, (b) monthly, (c) daily, and (d) continuously

Expert Answers

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Formula for compounding n times per year: `A=P(1+r/n)^(nt)`

Formula for compounding continuously: `A=Pe^(rt)`

A=Final Amount

P=Initial Amount

r=rate of investment expressed as a percent

n=number of compoundings per year

t=time in years

a) r=5% n=1 (annually)







Final Answer: 14.21 years

b) r=5% n=12 (monthly)







Final Answer: 13.89 years

c) r=5% n=365 (daily)







Final Answer: 13.86 years







Final Answer: 13.86 years

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