Turn this into a formula and step by step on how to solve it.
1 answer:
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Answer:
0.57 yr
Step-by-step explanation:
To find the doubling time with continuous compounding, we should look at the formula:
FV = future value, and
PV = present value
If FV is twice the PV, we can calculate the doubling time, t
1. David's doubling time
2. Violet's doubling time
The formula for interest compounded periodically is
where
n = the number of payments per year
3. David's doubling time vs Violet's
11.317 - 10.750 = 0.57 yr
It would take 0.57 yr longer for David's money to double than Violet's.
Answer:
Step-by-step explanation:
explanation is in the image above
