> If an investment doubles, fv/pv = 2. So t = ln(2) / .0578 = 11.99216575. Thus, it's about 12 yrs.
> If an investment triples, fv/pv = 3 So t = ln(3) / .0578 = 19.00713302. Thus, it's about 19 yrs.
An investment's future value with continuous compounding can be calculated as fv = pv * e ^ (r*t).
> fv = 10000 * e ^ (.0578*20) = 31771.99028. Thus, it's $31,771.99.
Your second problem is some kind of depreciation problem but it is not clearly stated. Did you mean the the value is 26000*0.75^10? If so, the value is $1,464.15.
I need help with this problem.
An investment of $10,000 is made at the interest rate of 5.78% compounded continuously. Find the time that it would take for the investment to double, to triple, and the amount that the investment would be worth after 20 years.
After years, the value of a car that originally oat $26,000(3/4)^t
-Find the value of the car 10 years after it was purchased.
