Question: If a bank pays 1.25% per year interest compounded continuously, how long does it take for the balance in an account to double?

If a bank pays 1.25% per year interest compounded continuously, how long does it take for the balance in an account to double?

Step by Step Solution

★★★★★

3.44 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The formula which models compounding interest continuously for t yea... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Applied Calculus Questions!

Q:

The Lexington Property Development Company has a $10,000 note receivable from a customer due in three years. How much is the note worth today if the interest rate is a. 9%? b. 12% compounded monthly?...

Q:

How long does it take money to double in value for the specified interest rate? (a) 6% compounded monthly (b) 6% compounded continuously

Q:

12- Suppose I want to be able to withdraw $5,000 at the end of five years and withdraw $6,000 at the end of six years, leaving a zero balance in the account after the last withdrawal. If I can earn...

Q:

need help with the following with explanation Page 62: problems 1, 2,9, 10,14, 20, 24,42, 44 and 48 I For Problems 12, nd k such that p = pOeAkt has the given doubling time. 1.10 2.0.4 9. If a bank...

Q:

If a bank pays 1 . 8 7 % per year interest compounded continuously, how long does it take for the balance in an account to double?

Q:

Solve problem 3.6 and 3.12 Problems to contributed Hamed Kashani, Saeid Sadri, and Baahak Ashuri, Georgia Institute of Technology 3-10 3-13 by A woman borrowed $2000 and agreed to repay it at the end...

Q:

A person deposits $25,000 in a bank that pays 5% per year interest, compounded continuously. The person continuously withdraws from the account at the rate of $750 per year. Find V (t) , the value of...

Q:

7. There are two possible investments A and B. Their case flows are shown in the table below. Illustrate these cash flows over 12 months in two cash flow diagrams. Show only the net cash flow in each...

Q:

Name: O . Thursday Applications of Logarithms Assignment - Monday Complete indicated problems on a new sheet of paper each day. 1. Five thousand dollars is invested at 4.5% compounded quarterly will...

Q:

$5,000 in five years at compounded continuously? How much money will you have in five years if you deposit $5,000 in the bank at 9% interest pounded continuously? How long will it take money to...

Q:

Lake Sales had $1,900,000 in sales last month. The contribution margin ratio was 40% and operating profits were $160,000. What sales volume does Lake's need to yield a $300,000 operating profit?

Q:

Magenta Inc. issued 3,500 shares of $1 par common stock for cash at $20 per share. This transaction will cause the net assets of the company to _____ by _____. a. increase; $3,500 b. decrease; $3,500...

Q:

When forecasting the Interest Expense, it generally makes the most sense to assume that it depends on _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . sales the tax rate net income less dividends interest - bearing...

Q:

(242) APT An analyst has modeled the stock of Crisp Trucking using a two-factor APT model. The risk-free rate is 6%, the expected return on the first factor (r1) is 12%, and the expected return on...

Q:

Figure 8 shows a supply curve for a commodity. It gives the relationship between the selling price of the commodity and the quantity that producers will manufacture. At a higher selling price, a...

Q:

Figure 8 shows a supply curve for a commodity. It gives the relationship between the selling price of the commodity and the quantity that producers will manufacture. At a higher selling price, a...

Q:

Find the area under each of the given curves. y = 4x; x = 2 to x = 3

Q:

8 Bernam Company currently produces and sells 22.000 units of product that has combine the compresi 22. 143.00 They new technology and expects the variable cost per un toto 52 per These coby 200 mm...

Q:

Journalize the following transactions for Xiu Xlu Company for June 2021, the company's first month of operations. 1. Purchased equipment on account for $9,000. 2. Billed customers $5,000 for services...

Q:

The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $ 2 . 5 million and net plant and...