If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the future value after t years? How long will it take to be worth $4,000? How long will it take to be worth $4,000 if it is continuously compounded?

If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the future value after t years? How long will it take to be worth $4,000? How long will it take to be worth $4,000 if it is continuously compounded?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 6MC: You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years....

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

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If you invest $2,000 in an account with an annual yield of 12.0% compounded each month. What is the future value after t years?

How long will it take to be worth $4,000?
How long will it take to be worth $4,000 if it is continuously

compounded?

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