My Math Forum Financial Interest Question

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 May 24th, 2009, 05:11 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, 05:47 PM #2 Global Moderator     Joined: Oct 2008 From: London, Ontario, Canada - The Forest City Posts: 7,958 Thanks: 1146 Math Focus: Elementary mathematics and beyond Re: Financial Interest Question I think you are right. See this page.
 May 24th, 2009, 05:54 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, 05:58 AM   #4
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Math Focus: Elementary mathematics and beyond
Re: Financial Interest Question

Quote:
 Originally Posted by ajxxx Thanks...but the answer i get is not in the list????
Maybe the list is wrong. Perhaps this is something you should discuss with your instructor.

 May 25th, 2009, 08:00 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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