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Math Help - another problem i am working on

  1. #1
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    another problem i am working on

    the formula A=P(1+(r/n))^nt is used to compute the value of an investment with interest compounded monthly if th annual interest rate: r=6.25% answer the following questions

    if 15,000 is invested originally what is the value of the investment after 5 years

    how long will it take for an investment to triple in value
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  2. #2
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    Quote Originally Posted by math321 View Post
    the formula A=P(1+(r/n))^nt is used to compute the value of an investment with interest compounded monthly if th annual interest rate: r=6.25% answer the following questions
    Actually that is the formula for interest compounded n times a year. For "compounded monthly", n= 12.

    if 15,000 is invested originally what is the value of the investment after 5 years
    Just evaluate the formula: A= (15000)\left(1+ \frac{.0625}{12}\right)^{(12)(5)}

    how long will it take for an investment to triple in value
    So A= 3P. Solve 3P= P\left(1+ \frac{.0625}{12}\right)^{(12)t} for t. An obvious first step is to cancel the "P"s. Then take a logarithm of both sides.
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