Using natural logarithms-fairly good savings account

Assignment Help Business Economics
Reference no: EM13858948

You would like to save money to buy a new car that costs $10,000, but currently only have $8,000 and you know you won’t have any further excess savings to contribute more to it. You have available to you a fairly good savings account which pays continuously compounded 5% interest rate. Recall that:

X(t + n) = Xt e^(rn)

Using natural logarithms, solve for n to determine how long it will take for the balance of your savings to reach $10,000.

Reference no: EM13858948

Questions Cloud

What is the residual demand elasticity facing : If the market demand curve is Q = 100-p, what is the market price elasticity of demand? If the supply curve of individual firm is q = p and there are 50 identical firms in the market, draw the residual demand facing any one firm. What is the residual..
Describe the opportunities and challenges posed : 1) Describe the opportunities and challenges posed by the diversity of the U.S. population. 2) Evaluate the roles of population density and where people live in U.S. politics.
The main drawback of the herfindahl-hirschman index : The main drawback of the Herfindahl-Hirschman Index (HHI) is that:
If the price elasticity of demand : If the price elasticity of demand in the United States for American-made luxury cars is 1.9, what is the impact on revenue if the price increases by 10%?
Using natural logarithms-fairly good savings account : You would like to save money to buy a new car that costs $10,000, but currently only have $8,000 and you know you won’t have any further excess savings to contribute more to it. You have available to you a fairly good savings account which pays conti..
How techniques assist in monitoring and controlling project : How do these techniques assist in monitoring and controlling the project activity?
What is validate scope and why is it important to project : Identify two actions a project manager can take to avoid terminating a project early. What is "validate scope" and why is it important to the project
When government or corporation sells bonds to raise money : When a government or corporation sells bonds to raise money, it can do so in one of two ways. It can target a certain amount to raise or it can target a certain amount to pay back at the end of the bond (this is simplified for the purpose of the prob..
Why is project management so important inside todays modern : Why is project management so important inside today's modern organization?

Reviews

Write a Review

 

Business Economics Questions & Answers

  Purchasing a new piece of construction equipment

A contractor is looking at purchasing a new piece of construction equipment. He can either buy it now or two years from now. The cost is $68,000 if purchased now. If purchased in two years, it will cost $81,000. Assume i = 10%/year and inflation f = ..

  Injecting huge liquidity and there is no fear of inflation

We have the Fitzpatrick bond which has a convexity of 30, duration of 4, a ytm of 12% and a maturity of 25 years. The central bank is injecting huge liquidity, and there is no fear of inflation. If the yields alter by 100 basis points, what would the..

  Explain the viewpoints of classical and keynesian economists

Explain the viewpoints of classical and Keynesian economists. How did the economy that existed at the time of these theories influence them?

  How are savers and borrowers brought together

people who want to borrow to finance their investment spending. How are savers and borrowers brought together.

  Determine the set of all restaurants

You and your friend are trying to decide where to have dinner. Restaurant #1 has an average price of $20 per person and is 5 miles away. Restaurant #2 has an average price of $30 but is only 1 mile away. Determine the set of all restaurants which wou..

  Transport its products to marketplace

Should the company buy or lease the fleet of trucks that it uses to transport its products to marketplace.

  What would be the equilibrium quantity

Assume that the wholesale skim milk market is perfectly competitive. Suppose demand is described by P=5.10-0.80Q and supply is described by P=1.90+0.20Q. If there are no price controls, what would be the equilibrium quantity?

  Which of these statements is most likely to be true

Depends on the evidence in this article and what you know about the economy in the United States, decide which of these statements is most likely to be true.

  Find the average time per unit required to produce

Find the average time per unit required to produce the first 15 units, if the slope parameter of the learning rate is 91% and the first unit takes 400 hours.

  Profits encourage entry into purely competitive industries

Why profits encourage entry into purely competitive industries and explain how losses encourage exit from purely competitive industries.

  What relationship exists among these variables

Suppose X - M = net exports; T - G = government sector balance; and S - I = private sector balance. What relationship exists among these variables?

  The central bank can do so by stimulating consumption

The Central Bank of Muji wishes to eliminate the recessionary gap while expansionary monetary policy. The central bank can do so by stimulating consumption and planned investment.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd