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course Mth 279
Section 2.4.*********************************************
Question: 1. How long will it take an investment of $1000 to reach $3000 if it is compounded annually at 4%?
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How long will it take if compounded quarterly at the same annual rate?
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How long will it take if compounded continuously at the same annual rate?
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YYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
Your solution:
1.
1000*(1+0.04)^n=3000
n=28
It takes 28 years to reach $3000
2.
28/4=7
3.
28/12=2.33
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Good. Please submit this along with the rest of the document.
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