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How many years will it take for an initial investment of 25000 to grow to 80000 at a rate of interest of 7 percent compounded continously?
"Continuously" is exactly how this question arrives on WikiAnswers. Someone has
distributed an exam or a homework assignment with a poorly written question on
it, and a lot of people are coming here to get the answer.
WikiAnswers is not here to answer exam or homework questions. But the best
response to this one isn't a numerical 'answer'. It's this:
There's no such thing as "compounded continously", even if the spelling were corrected.
The compounding interval must be specified, no matter how short it may be.
Popular compounding intervals include: Annually, semi-annually, quarterly,
monthly, weekly, or daily. Technically, it could even be hourly, or minutely, but
it has to be specified. Compounding is a discrete process, and can never
proceed "continuously".
What else can I help you with?
The concepts of simple interest and compound interest and how these affected the results of your investment exercise?
Simple interest (compounded once) Initial amount(1+interest rate) Compound Interest Initial amount(1+interest rate/number of times compounding)^number of times compounding per yr
What is the future value of 500 invested for 15 years at 5 percent?
It depends how the interest is calculated. If it's compounded, your initial 500 investment would be worth 638.15 after 5 years.
How long does it take 1125 to triple if it is invested at 7 percent interest compounded quarterly?
(1 + .07/4)4x = 3 4x log(1+.07/4) = log(3) x = 0.25 log(3)/log(1.0175) = 15.83 The amount of the original investment doesn't matter. At 7% compounded quarterly, the value passes triple the original amount with the interest payment at the end of the 16th year.
How much will 6000 for 6 years at 8 and a half percent compounded daily will grow?
Continuous interest formula, A = Pe^(rt)....where A is the accumulated amount, P is the initial investment, r is the interest rate expressed as a decimal, and t is the time - usually in years. Then, A = 6000e^(0.085 x 6) = 6000e^0.51 = 9991.75 So the growth amount is, 9991.75 - 6000.00 = 3991.75
Approximately how long will it take for 1000 to grow to 5006 at 8 annual interest and compounded 12 times per year?
Use the equation $=$0*(1 + r)xn where $ is the amount of money, $0 is the initial amount of money, r is the rate, x is the number of times per year the interest is compounded, and n is the number of years the interest is compounded. We are solving for n. To do this we need to use logs. log(1 + r)($/$0)/x = n log1.08(5006/1000)/12 = n = 1.744 years.
A loan at 6 percent interest over 5 years What is the total output?
If the interest is simple interest, then the value at the end of 5 years is 1.3 times the initial investment. If the interest is compounded annually, then the value at the end of 5 years is 1.3382 times the initial investment. If the interest is compounded monthly, then the value at the end of 5 years is 1.3489 times the initial investment.
The concepts of simple interest and compound interest and how these affected the results of your investment exercise?
Simple interest (compounded once) Initial amount(1+interest rate) Compound Interest Initial amount(1+interest rate/number of times compounding)^number of times compounding per yr
What is the future value of 500 invested for 15 years at 5 percent?
It depends how the interest is calculated. If it's compounded, your initial 500 investment would be worth 638.15 after 5 years.
Can you provide me with compound interest formula sheets?
The compound interest formula is A P(1 r/n)(nt), where: A the future value of the investment P the principal amount (initial investment) r the annual interest rate (in decimal form) n the number of times interest is compounded per year t the number of years the money is invested for You can use this formula to calculate the future value of an investment with compound interest.
How much would 500 invested at 7 interest compounded annually be worth after 4 years?
To calculate the future value of an investment with compound interest, you can use the formula ( A = P(1 + r)^n ), where ( A ) is the amount of money accumulated after n years, ( P ) is the principal amount (initial investment), ( r ) is the annual interest rate (as a decimal), and ( n ) is the number of years. For an investment of $500 at a 7% interest rate compounded annually over 4 years: ( A = 500(1 + 0.07)^4 \approx 500(1.3108) \approx 655.40 ). So, the investment would be worth approximately $655.40 after 4 years.
How much would 500 invested compounded continuously be worth after 3 years?
To calculate the future value of an investment compounded continuously, you can use the formula ( A = Pe^{rt} ), where ( A ) is the amount of money accumulated after time ( t ), ( P ) is the principal amount (initial investment), ( r ) is the annual interest rate, and ( t ) is the time in years. Without a specific interest rate, I cannot provide an exact value. However, if you have an interest rate, you can plug it into the formula to find the future value after 3 years.
How much would 500 invested at 6 interest compounded monthly be worth after 4 years?
To calculate the future value of an investment with compound interest, you can use the formula: ( A = P(1 + \frac{r}{n})^{nt} ), where ( A ) is the amount of money accumulated after n years, ( P ) is the principal amount (initial investment), ( r ) is the annual interest rate (decimal), ( n ) is the number of times interest is compounded per year, and ( t ) is the number of years. For $500 invested at a 6% annual interest rate compounded monthly for 4 years: ( A = 500(1 + \frac{0.06}{12})^{12 \times 4} ) Calculating this gives approximately $634.96.
Why would two investments with the same annual rate may not be equal with respect to the interest they return?
We can think of two ways that could happen: 1). The initial investment amounts (the principles) may be different. 2). Interest on the two investments may be compounded at different intervals.
How long does it take 1125 to triple if it is invested at 7 percent interest compounded quarterly?
(1 + .07/4)4x = 3 4x log(1+.07/4) = log(3) x = 0.25 log(3)/log(1.0175) = 15.83 The amount of the original investment doesn't matter. At 7% compounded quarterly, the value passes triple the original amount with the interest payment at the end of the 16th year.
How can I calculate compound interest in Google Sheets?
To calculate compound interest in Google Sheets, you can use the formula A P(1 r/n)(nt), where: A is the future value of the investment P is the principal amount (initial investment) r is the annual interest rate n is the number of times the interest is compounded per year t is the number of years the money is invested for You can input these values into separate cells in Google Sheets and then use the formula to calculate the compound interest.
How can I use Google Sheets to calculate compound interest?
To calculate compound interest in Google Sheets, you can use the formula A P(1 r/n)(nt), where: A is the future value of the investment P is the principal amount (initial investment) r is the annual interest rate n is the number of times interest is compounded per year t is the number of years the money is invested for You can input these values into separate cells in Google Sheets and then use the formula to calculate the compound interest.
What is the formula for calculating compound interest on a sum of money invested in a financial instrument over a period of time using sheets compound interest formula?
The formula for calculating compound interest on an investment is A P(1 r/n)(nt), where: A is the total amount after the time period, P is the principal amount (initial investment), r is the annual interest rate, n is the number of times interest is compounded per year, and t is the number of years the money is invested for.
