Find the time required for an investment of 5000 dollars to grow to 7400 dollars at an interest rate of 7.5 percent per year, compounded quarterly.
I can not find the answer I tried this formula but I think is wrong...A=P(1+r/n)^nt....I keep on getting the wrong answer!
2007-10-07 12:13:45 · 3 answers · asked by RedSparkle 1 in Science & Mathematics ➔ Mathematics
Okay, I am using the formula. Hope it gives the correct answer. n = 4 because it is compounded quarterly
7400 = 5000(1 + 0.075/4) ^ nt
7400/5000 = 1.01875 ^ 4t
1.48 = 1.01875 ^ 4t
take log on both side
4t = log 1.48 / log 1.01875 = 21.10
t = 5.27
the answer is 21.10 quarters or 5.27 year
2007-10-07 12:39:01 · answer #1 · answered by norman 7 · 0⤊ 0⤋
I came up with 5.27609 years. But I didn't use the fomula you gave. I tried an online calulator. The website is below. But for test purposes, the question says it is compounded quarterly, so I'd go with 5.25 years.
2007-10-07 12:40:36 · answer #2 · answered by Richard_CA 4 · 0⤊ 0⤋
Is that calculus? I don't know (I never had calculus or precal).
2007-10-07 12:21:26 · answer #3 · answered by ms_kittycrazy 2 · 0⤊ 0⤋