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Compound interest on investment?
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<blockquote data-quote="MagicMatt" data-source="post: 2645183" data-attributes="member: 340544"><p>The formula for continuously compounded interest is</p><p></p><p>A = Pe^(rt)</p><p></p><p>where:</p><p></p><p>A = final amount, after 't' years</p><p>P = principal (starting) amount</p><p>r = interest rate</p><p>t = time, in years</p><p></p><p>So plug in some numbers. Let's say you start with $1,000, and you want to quadruple that into $4,000. </p><p></p><p>4000 = 1000e^(0.05t)</p><p></p><p>Now solve for t:</p><p></p><p>4 = e^(0.05t)</p><p>ln(4) = ln(e^(0.05t))</p><p>ln(4) = 0.05t</p><p>ln(4)/0.05 = t</p><p>27.725 = t</p><p></p><p>So, it would take almost 27 years and 9 months.</p></blockquote><p></p>
[QUOTE="MagicMatt, post: 2645183, member: 340544"] The formula for continuously compounded interest is A = Pe^(rt) where: A = final amount, after 't' years P = principal (starting) amount r = interest rate t = time, in years So plug in some numbers. Let's say you start with $1,000, and you want to quadruple that into $4,000. 4000 = 1000e^(0.05t) Now solve for t: 4 = e^(0.05t) ln(4) = ln(e^(0.05t)) ln(4) = 0.05t ln(4)/0.05 = t 27.725 = t So, it would take almost 27 years and 9 months. [/QUOTE]
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