1 / 9

Continually Compounded

Continually Compounded. Definition/Formula. The natural logarithmic function can be used to solve an equation of the form for the exponent t in order to find the time it takes for an investment that is compounded continuously to reach a specific amount. . Example.

carol
Download Presentation

Continually Compounded

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Continually Compounded

  2. Definition/Formula The natural logarithmic function can be used to solve an equation of the form for the exponent t in order to find the time it takes for an investment that is compounded continuously to reach a specific amount.

  3. Example How long does it take for an investment to double at an annual amount of 8.5% compounded continuously?

  4. Example How long does it take an investment to double at an annual rate of 7.5% compounded continuously?

  5. Example Find the amount, A, for an investment of $1000 at an annual rate of 4% for 10 years.

  6. Example How long will it take to double your money if you deposit $1200 at an annual rate of 6.9% compounded continuously?

  7. Radioactive Decay The function represents the decay of carbon-14, where:

  8. Example • A piece of charcoal from an ancient campsite is found in an archaeological dig. It contains 9% of its original amount of carbon-14. Estimate the age of the charcoal.

  9. Assignment Complete WS 4 #13-23

More Related