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May 24th, 2009, 06:11 PM  #1 
Newbie Joined: May 2009 Posts: 2 Thanks: 0  Financial Interest Question
A bank pays a nominal interest rate of 6%, continuously compounded for deposits. What is the length of time necessary for a bank deposit of $1,000 to grow to $1,500 if the nominal continuously compounded interest rate is 6%. Choose one. (a) 5.4350 years (b) 4.517 years (c) 7.8132 years (d) 7.7577 years i tried by doing 1000* e^rt = 1500 (formula for continuous compounding) and get answer as 6.75 yrs???? Can anyone please tell me what am I doing wrong? 
May 24th, 2009, 06:54 PM  #3 
Newbie Joined: May 2009 Posts: 2 Thanks: 0  Re: Financial Interest Question
Thanks...but the answer i get is not in the list???? Does anyone has any other way or please assist....am still trying but I gave it a 100% shot!! 
May 25th, 2009, 06:58 AM  #4  
Global Moderator Joined: Oct 2008 From: London, Ontario, Canada  The Forest City Posts: 7,912 Thanks: 1110 Math Focus: Elementary mathematics and beyond  Re: Financial Interest Question Quote:
 
May 25th, 2009, 09:00 AM  #5 
Senior Member Joined: May 2008 From: York, UK Posts: 1,300 Thanks: 0  Re: Financial Interest Question
Presumably there is a misprint, and (d) is supposed to be 6.7577 rather than 7.7577?


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