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f Tanisha has ​$ 1,000 to invest at 5 % per annum compounded ​, how long will it be before she has ​$1,400 ​? If the compounding is​ continuous, how long will it​ be?
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Part 1
Compounding ​, it will be about
  
enter your response here years before Tanisha has ​$1,400.

Respuesta :

With annual compounding, the number of years for 1000 to become 1400 is 6.7 years

With continous compounding, the number of years for 1000 to become 1400 is 1.35 years

How long would it take $1000 to become $1,400?

With annual compounding, the formula that would be used is:

(In FV / PV) / r

Where:

  • FV = future value
  • PV = present value
  • r = interest rate

(In 1400 / 1000) / 0.05 = 6.7 years

With continous compounding, the formula that would be used is:

(In 1400 / 1000) / (In e^r)

Where r = interest rate

((In 1400 / 1000) / (In e^0.05) = 1.35 years

To learn more about how to determine the number of years, please check: : https://brainly.com/question/21841217

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