If an investment of $5,000 is made in an account returning 2% p.a. then how long will it take for the account to have $10,000 if: (a) Interest is compounded monthly? (12 times a year) (b) Interest is compounded continuously? Give your answers rounded to two decimal places.

If an investment of $5,000 is made in an account returning 2% p.a. then how long will it take for the account to have $10,000 if: (a) Interest is compounded monthly? (12 times a year) (b) Interest is compounded continuously? Give your answers rounded to two decimal places.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 8EA: You put $250 in the bank for S years at 12%. A. If interest is added at the end of the year, how...

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If an investment of $5,000 is made in an account returning 2% p.a.
then how long will it take for the account to have $10,000 if:
(a) Interest is compounded monthly? (12 times a year)
(b) Interest is compounded continuously?
Give your answers rounded to two decimal places.

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