Find the time required for an investment of 5000 dollars to grow to 8600 dollars at an interest rate of 7.5 percent per year, compounded quarterly.Your answer is t=

Solution

Solution

Time : 7.3

Solution steps

Translate the problem into an equation:

8600 = 5000 (1 + \frac{0.075}{4})^{4 t}

Solve for

t, 8600 = 5000 (1 + \frac{0.075}{4})^{4 t} : t = 7.3

Time : 7.3

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