Cryptocurrency Q&A
How long in years will it take a $300 investment to be worth $1000 if it is continuously compounded at 9% per year?
How long in years will it take a $300 investment to be worth $1000 if it is continuously compounded at 9% per year?
CharmedEcho
Fri Sep 13 2024
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7 answers
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Could you please elaborate on how long it would take for a $300 investment to grow to $1000, assuming it's continuously compounded at a rate of 9% annually? I'm curious to understand the specific timeframe involved in this scenario, and how the concept of continuous compounding affects the overall growth of the investment. Additionally, I'm interested in knowing if there's a formula or method that can be used to calculate this accurately.
7 answers
SsangyongSpiritedStrengthCourageBravery
Sun Sep 15 2024
In the realm of finance and cryptocurrency, calculations often involve intricate formulas that require careful manipulation. To determine a specific time frame, denoted as 't', we must first restructure a given formula.
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Carolina
Sun Sep 15 2024
This restructuring process involves isolating the variable 't' by moving all other terms to one side of the equation. Specifically, we rearrange the formula to read 't = ln(A/P) / r', where 'ln' represents the natural logarithm, 'A' and 'P' are given constants, and 'r' is a rate.
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SolitudeSeeker
Sun Sep 15 2024
With the formula properly arranged, we proceed to insert the specified values into the equation. For this example, let's assume 'A' equals 1000, 'P' equals 300, and 'r' is 0.11. These values reflect the context within which we are working.
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Chloe_emma_researcher
Sun Sep 15 2024
Substituting these values into the formula, we obtain 't = ln(1000/300) / 0.11'. This step is crucial as it allows us to perform the necessary calculations to solve for 't'.
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Michele
Sat Sep 14 2024
To solve for 't', we execute the mathematical operations dictated by the formula. First, we calculate the natural logarithm of the fraction 1000/300, which simplifies to the logarithm of approximately 3.33.
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