The amount of money (A)after (t) years that principle (P)will become invested at rate(r) compounded (n) times a year is given by the relationship A(t)=P(1+r/n)^nt where (r) is expressed as a decimal.To the nearets tenth, how long will it take $2500 to become $4500if it is invested at 7% and is compounded quarterly?
2006-12-21 09:19:34 · 4 answers · asked by Matt 2 in Science & Mathematics ➔ Mathematics
Not tomorrow hahahaha
So solve 2500*(1+.07/4)^(4t)=4500 for t
(1.0175)^(4t)= 4500/2500 =9/5
ln(1.0175^(4t)) = ln(9/5)
4t*ln(1.0175) =ln(9/5)
t= ln(9/5)/ (4*ln1.0175)
t= approx 8&1/2 years
> fsolve(2500*(1+.07/4)^(4*t)=4500,t);
8.470213246
2006-12-21 09:24:41 · answer #1 · answered by a_math_guy 5 · 1⤊ 0⤋
3
2006-12-21 17:24:13 · answer #2 · answered by Anonymous · 0⤊ 1⤋
the principal P=$2500
n=noof cycles=4*t
t=no of years
r=annual %age ofinterest=0.07
A=amount atthe end of t years=$4500
the equation
4500=2500(1+0.07/4)^4t
(1.01725)^4t=4500/2500
4t log 1.01725=log(9/5)
4t(0.00742769853)=0.255272505
t=0.255272505/4*0.00742769853
=8.625
the time =about 9 years
2006-12-21 17:40:17 · answer #3 · answered by raj 7 · 0⤊ 0⤋
4500 = 2500(1 + 0.07/4)^(4t)
t = 8.5 years
2006-12-21 17:28:59 · answer #4 · answered by sahsjing 7 · 1⤊ 0⤋