Question

Word problem, please help!

You invested $52,000.00 at 6% for 5 years. What is your total return on this investment for the following compounding:

i) Annually
ii) Quarterly
iii) Semiannual
iv) Continuously
v) When will your investment double?

What do those ^ mean & how do I figure it out??

Also this came with it: A=P(1+r/n)^(nt) A=Pe^(rt)

Answer 1

\[A=P(1+\frac{r}{n})^{nt}\]

Answer 2

\[A=Pe ^{rt}\]

Answer 3

1) once per year
2) 4 times per years
3) twice a year
4) I = Pe^(rt)

Answer 4

@sourwing thank you so much! what numbers would I plug into the equation and into which of the 2 equations??

Answer 5

n = number of times per year

Answer 6

so sorry to bother you but i just want to make sure i do the correct work... would #2 look like this: A=52000(1+6/4)^(6*5)?

Answer 7

#3. would look like: A=52000(1+6/2)^(2*5)

how do I know what the I and E are in the equation I=Pe^(rt) & how would I know when my investment doubles? @sourwing

Answer 8

yea

Answer 9

woohoo! :D so my last question is how do I know what the I and E are in the equation I=Pe^(rt) & how would I know when my investment doubles?

Answer 10

@sourwing for #2 and #3 would R=6 or .06 when I plug it into the equation?

Answer 11

set I = 2P

Answer 12

thank you @sourwing but can you tell me what E in the equation A=Pe^(rt) is??

Answer 13

& would 6% in the equation be 6 or .06?

Answer 14

2P = P e^(rt), e is just a number. Just like pi

Answer 15

6% = 0.06

Answer 16

so to figure out when the investment doubles i just do i=2(52000) which is 104000

Answer 17

and continuously would be A=52000e^30?

Answer 18

@sourwing I promise LAST question for you, but I know you said that e is just a number like pi, but what number is it?

Answer 19

nevermind, I figured out that e is 2.71...