It you invest S500 at an annual interest rate of 10% compounded continuously, calculate the final
1 answer:
Answer:
Step-by-step explanation:
The formula for continuous compounding is
where A(t) is the amount after all the compounding is done, P is the initial investment, r is the rate as a decimal, and t is the time in years. Filling in our info:
First raise e to the product of that power to get
Multiply those numbers together to get A(t) = $824.36
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Answer:
8.31 weeks
Step-by-step explanation:
Given that the cost of one share of Apple stock, C=$120
Rate is the increment of the stock value, R= 5%/week=0.05 / week.
Assuming that after t week, the stock has been sold for $180.
Since the stock value increased at 5% every week, so, the interest is compounded weekly, so
[taking log both sides]
weeks
Hence, after 8.31 weeks the stock has been sold for $180.