Suppose you are offered an investment that pays 12.5% continuously compounded. Show three methods for determin

Suppose you are offered an investment that pays 12.5% continuously compounded. Show three methods for determining how long will it take your money to double?

An investment will increase in value by 400% over the next 50 years. What is the annual interest rate that, when compounded quarterly, provides this return?

are you asking for us to help you cheat on your test that you seem to be in the middle of?

You have MANY of these questions posted here in a short period of time. You probably should have studied instead!

#1 Why 3 when 1 will do.
e^.125 =1.13315 - 1 = .13315 EAY
N=? I/Y=13.315 PV=-100 PMT=0 FV=200
N=5.54512; 365*.54512 = 199
So it will take 5 years & 199 days for your money to double.

Of course using a financial calc might not be allowed on your homework.

#2
N=200 I/Y=? PV=-100 PMT=0 FV=500
I/Y=.80797 * 5 = 4.03983% Annual Rate

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