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Continuously Compounding Interest

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1. A woman deposits $50,000 in a savings account with 4% continuously compounded interest. How many years must she wait until the balance has doubled? Use the Compounding continuously formula and show the steps involved in getting the solution.

2. True or false: The function " f(x) = 3^x " grows three times faster than the function " g(x) = x ". Explain. It may help you to compare the graphs of these two equations in order to reach an answer.

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Continuously compounding interest and logarithmic curves are investigated. The solution is detailed and well presented. The response was given a rating of "5/5" by the student who originally posted the question.

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1. Use the formula for continuously compounded interest calculation provided in the reference:
FV=P*exp(Yr)
Where FV = future value at year Y
P = principal value
Y = years
r = interest rate ...

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