Calculating Investment Growth: $5,000 to $7,500 at 8% Interest

  • Thread starter Thread starter m90210
  • Start date Start date
  • Tags Tags
    Investing
AI Thread Summary
To determine how long it takes for $5,000 to grow to $7,500 at 8% interest, both compounded semiannually and continuously, the relevant formulas are A=P(1+r/m)^(mt) for compound interest and A=Pe^(rt) for continuous compounding. The discussion highlights the importance of showing calculations and results to receive accurate assistance. Without specific details on the calculations attempted or the textbook's answer, it's challenging for others to provide help. Clarifying these points would enable more effective guidance on achieving the correct answer. Accurate application of the formulas is essential for resolving the investment growth question.
m90210
Messages
2
Reaction score
0
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!
 
Mathematics news on Phys.org
Plug into&chug out of the formula given in your textbook.
 
simple interest; A=P(1+rt)
compound interest; A=P(1+r/m)^mt
continuous compound interest; A=Pe^rt

I just can't seem to get my answer to match what is in the textbook. :(
 
You haven't shown us what you did, you haven't told us what answer you got, you haven't told us what the answer in the book was! I don't see how we can help you!
 
Thread 'Video on imaginary numbers and some queries'
Hi, I was watching the following video. I found some points confusing. Could you please help me to understand the gaps? Thanks, in advance! Question 1: Around 4:22, the video says the following. So for those mathematicians, negative numbers didn't exist. You could subtract, that is find the difference between two positive quantities, but you couldn't have a negative answer or negative coefficients. Mathematicians were so averse to negative numbers that there was no single quadratic...
Insights auto threads is broken atm, so I'm manually creating these for new Insight articles. In Dirac’s Principles of Quantum Mechanics published in 1930 he introduced a “convenient notation” he referred to as a “delta function” which he treated as a continuum analog to the discrete Kronecker delta. The Kronecker delta is simply the indexed components of the identity operator in matrix algebra Source: https://www.physicsforums.com/insights/what-exactly-is-diracs-delta-function/ by...
Thread 'Unit Circle Double Angle Derivations'
Here I made a terrible mistake of assuming this to be an equilateral triangle and set 2sinx=1 => x=pi/6. Although this did derive the double angle formulas it also led into a terrible mess trying to find all the combinations of sides. I must have been tired and just assumed 6x=180 and 2sinx=1. By that time, I was so mindset that I nearly scolded a person for even saying 90-x. I wonder if this is a case of biased observation that seeks to dis credit me like Jesus of Nazareth since in reality...
Back
Top