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Investment Problem

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Russ McClelland, who is self-employed, wants to invest $60,000 in a pension plan. One investment offers 7% compounded quarterly. Another offers 6.75% compounded continuously.

1. Growth of an account: If Russ chooses the plan with continuous compounding, how long will it take for his $60,000 to grow to $80,000?

2. Doubling Time: If interest is compounded continuously and the interest rate is tripled, what effect will this have on the time required for an investment to double?

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