Purchase Solution

Doubling Time for Investments

Not what you're looking for?

Ask Custom Question

How long will it take money to double it is invested at 7% compounded semiannually and 6.6% compounded continuously?

7% = x years compounded semiannually
6.6% = x years compounded continuously

Purchase this Solution
Solution Summary

The doubling time for an investment with different percentage rates, compunded continuously and semiannually is calculated with the process explained in detail

Solution Preview

We need 2 formulas here:

The amount of money t years from now in the account with P dollars invested initially and the anual percentage rate r compounded n times a year is

A = P(1+r/n)^(nt)

And the amount of money t years from now in the account with P dollars invested initially at the annual percentage rate r compounded continuously is

A = Pe^(rt)

An interesting property of this model is that the amount ...

Purchase this Solution
Free BrainMass Quizzes
MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Introduction to Finance

This quiz test introductory finance topics.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Organizational Behavior (OB)

The organizational behavior (OB) quiz will help you better understand organizational behavior through the lens of managers including workforce diversity.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

View More Free Quizzes
Related BrainMass Solutions

  • Approximation Doubling

    Therefore, the doubling time=70/(2.2)=32 years. For 10 years, the factor is 2*10/32=0.625 or 62.5%. The expert examines approximation doubling.

  • Using Growth Rate to Predict Population

    Use the approximate doubling time formula. (Round the final answer to the nearest whole number as needed. Round the doubling time to the nearest year as needed.) Solution: First, the approximate doubling time is 70/1.5=46.67=47 years.

  • Doubling Time For Money With 11.8 Percent Annual Interest

    411595 Doubling Time For Money With 11.8 Percent Annual Interest If you deposit money today in an account that pays 11.8 percent annual interest, how long will it take to double your money?

  • The doubling period

    Assume the culture size at time t is n(t), then it can be expressed as n(t) = n0 * 2^(t/r) where n0 is the initial culture size.

  • Time Required to Double the Value of Lump Sum Amount

    doubling, it will take another 7.2 years for the doubled amount to get doubled i.e. 4 times the original amount.

  • Maximum Population of the World

    Second, put these values into the Doubling time calculations equation: new value = initial value * 2 ^(t/Tdouble) Third, solve for t.

  • The equilibrium sensitivity of the climate

    1c) For a given increase in CO_2 concentration the predicted temperature increase at a given point in time (2100 say) will not depend solely on the equilibrium climate sensitivity.

  • Physics: Solve a population doubling question

    294790 Physics: Solve a population doubling question An easy way to find the time it takes for compound interest to double an investment is to divide 72 by the interest rate in percent.

  • Wireless Networks Questions

    (b) If after a failure we wait for a long time (with respect to the channel's coherence time), successive attempts are approximately independent of each other and the number of attempts needed to succeed is a geometric random variable whose mean is the

View More Related Solutions