Question
Fiona invested
$
3000
at
6
%
compounded continuously. At the same time, Maria invested
$
3200
at
6
%
compounded daily. How long will it take (to the nearest day) for their investments to be equal in value?
$
3000
at
6
%
compounded continuously. At the same time, Maria invested
$
3200
at
6
%
compounded daily. How long will it take (to the nearest day) for their investments to be equal in value?
Answers
oobleck
why all those newlines? Very annoying.
3000e^(.06x) = 3200(1 + .06/365)^(365x)
x = 13,088.4 years
daily and continuous compounding are very close to equal, so that $200 head start takes a long time to make up.
3000e^(.06x) = 3200(1 + .06/365)^(365x)
x = 13,088.4 years
daily and continuous compounding are very close to equal, so that $200 head start takes a long time to make up.