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m90210
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How many years (to two decimal places) will it take $5,000 to grow to $7,500 if invested at 8% compounded semiannually? Compounded continuously? Thank you!
Calculating Investment Growth: $5,000 to $7,500 at 8% Interest
- Context: Undergrad
- Thread starter m90210
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Discussion Overview
The discussion revolves around calculating the time required for an investment of $5,000 to grow to $7,500 at an interest rate of 8%, considering both semiannual compounding and continuous compounding. The focus is on applying different interest formulas to derive the answer.
Discussion Character
- Homework-related
Main Points Raised
- One participant asks how many years it will take for the investment to grow, specifying both semiannual and continuous compounding.
- Another participant suggests using the formulas provided in the textbook without elaborating on the specific calculations.
- A third participant outlines the formulas for simple interest, compound interest, and continuous compounding but expresses frustration at not matching the textbook answer.
- A fourth participant challenges the initial poster for not providing their calculations or the answers they obtained, indicating that more information is needed to assist.
Areas of Agreement / Disagreement
There is no consensus on the correct approach or answer, as participants have differing levels of information and clarity regarding the calculations.
Contextual Notes
The discussion lacks specific details about the calculations performed by the initial poster, including the answers they received and the textbook's answer, which limits the ability to provide targeted assistance.
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