Section 6.7 Compound Interest. Find the amount A that results from investing a principal P of $2000...
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Section 6.7 Compound Interest
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Transcript of Section 6.7 Compound Interest. Find the amount A that results from investing a principal P of $2000...
![Page 1: Section 6.7 Compound Interest. Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously.](https://reader035.fdocuments.net/reader035/viewer/2022081603/56649d415503460f94a1bdd2/html5/thumbnails/1.jpg)
Section 6.7
Compound Interest
![Page 2: Section 6.7 Compound Interest. Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously.](https://reader035.fdocuments.net/reader035/viewer/2022081603/56649d415503460f94a1bdd2/html5/thumbnails/2.jpg)
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Find the amount A that results from investing a principal P of $2000 at an annual rate r of 8% compounded continuously for a time t of 1 year.
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The effective rate of interest is the equivalent annual simple rate of interest that would yield the same amount as compounding after 1 year.
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(a)7% compounded monthly?
(b) 6% compounded continuously?
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What annual rate of interest compounded quarterly should you seek if you want to double your investment in 6 years?
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(a)How long will it take for an investment to double in value if it earns 6% compounded continuously?
(b) How long will it take to triple at this rate?
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A)
B)
C)
D)