Question

Determine the time necessary for P dollars to double when it is invested at interest rate r compounded monthly, daily. r =3.4%

Answer 1

plug in 2P for A
.034 for r

solve for t

Answer 2

then whats the difference between monthly and daily

Answer 3

\[\Large 2\cancel P=\cancel P \left( 1 + {0.034\over12} \right)^{12t}\]and
\[\Large 2\cancel P=\cancel P \left( 1 + {0.034\over365} \right)^{365 t}\]

Answer 4

wait don't go yet let me solve it

Answer 5

how do i get t out of an exponent

Answer 6

take log of both sides

Answer 7

i got 20.44 for monthly but it aid its wrong

Answer 8

20.4155493 ... monthly
20.3876313 ... daily

Answer 9

when you do 1+0.034/12, do NOT round

Answer 10

ooooh! how do i know when to use a=pert and the one u gave me for this problem

Answer 11

A=Pe^(rt) is when compounding continuously only

Answer 12

ok thank you again how do u know all this?

Answer 13

\[\Large A=P \left( 1+\frac rn \right)^{nt}\] is where you no compound n times in a year.

Answer 14

*no = only

Answer 15

thanks a lot