Determine the time necessary for p dollars to double when it is invested at interest rate r compounded annually, monthly, daily, and continuously. (round your answers to two decimal places.)
r=14%

Part 1) 8.17 years

Part 2) 4.98 years

Part 3) 4.95 years

Part 4) 4.95 years

Step-by-step explanation:

we know that    

The compound interest formula is equal to  

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest  in decimal

t is Number of Time Periods  

n is the number of times interest is compounded per year

Part 1) Determine the time necessary for P dollars to double when it is invested at interest rate r=14% compounded annually

in this problem we have  

substitute in the formula above  

Apply log both sides

Part 2) Determine the time necessary for P dollars to double when it is invested at interest rate r=14% compounded monthly

in this problem we have      

substitute in the formula above  

Apply log both sides

Part 3) Determine the time necessary for P dollars to double when it is invested at interest rate r=14% compounded daily

in this problem we have  

substitute in the formula above  

Apply log both sides

Part 4) Determine the time necessary for P dollars to double when it is invested at interest rate r=14% continuously

we know that

The formula to calculate continuously compounded interest is equal to

where  

A is the Final Investment Value  

P is the Principal amount of money to be invested  

r is the rate of interest in decimal  

t is Number of Time Periods  

e is the mathematical constant number

we have  

substitute in the formula above  

Simplify

Apply ln both sides

Remember that ln(e)=1

step-by-step explanation:

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