Ask Question
12 July, 01:56

lucy invests $800 in an account that earns 6.12% annual interest compounded continuously. juan invests $1600 in an account that earns 3.9% annual interest compounded continuously. find when the value of lucys investment equals the value of juans investment?

+3
Answers (1)
  1. 12 July, 05:25
    0
    Both their investments will reach a similar value in 32 years, 9 months and 8 days. Both accounts will have exactly $5,606.

    Explanation:

    Original investment: $800 at 6.12% $1,600 at 3.9%

    future value 10 years $1,449 $2,346

    future value 20 years $2,624 $3,439

    future value 30 years $4,753 $5,042

    future value 31 years $5,044 $5,238

    future value 32 years $5,353 $5,442

    future value 33 years $5,681 $5,655

    It will take over 32 years for both investments to match their amounts.

    to determine the approximate month we start with the future value in 32 years:

    $5,353 $5,442

    future value in 6 months $5,517 $5,548

    future value in 9 months $5,599 $5,601

    future value in 9 months

    and 5 days $5,603 $5,604

    future value in 9 months

    and 8 days $5,606 $5,606
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “lucy invests $800 in an account that earns 6.12% annual interest compounded continuously. juan invests $1600 in an account that earns 3.9% ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers