SOLUTION: 1. Assume you invest $10,000 in a mutual fund (e.g. money market fund) at an APR of 7% compounded quarterly. How long, to the nearest tenth of a year, will it take the $10,000 to
Algebra.Com
Question 1148971: 1. Assume you invest $10,000 in a mutual fund (e.g. money market fund) at an APR of 7% compounded quarterly. How long, to the nearest tenth of a year, will it take the $10,000 to grow to $100,000? [Solve using both methods below.]
Answer by greenestamps(13200) (Show Source): You can put this solution on YOUR website!
A = final value
P - beginning value (principal)
r = annual rate
n = number of compounding periods per year
t = number of years
The unknown is in an exponent, so an algebraic solution requires logarithms. An easier method is using a graphing calculator. I will guess that those are the two solution methods "below"....
Using logs....
Use a calculator....
With a graphing calculator....
Y1 = 10000(1.0175)^(4x)
Y2 = 100000
Graph and find the point of intersection
RELATED QUESTIONS
Ashley has earmarked at most $950,000 for investment in three mutual funds: a money... (answered by ikleyn)
David received an inheritance of $50,000. His financial advisor suggests that he invest... (answered by ikleyn)
John received an inheritance of $12,000$12,000 that he divided into three parts
and... (answered by Boreal)
You recently graduated and your job search brought you to Blues Airline. Since you felt... (answered by ikleyn)
Mutual Funds Suppose that in a certain year, the Phoenix/Zweig Advisors Zweig Total... (answered by Theo)
YOU HAVE JUST WON $100,000 FROM A LOTTERY. IF YOU INVEST ALL THIS AMOUNT IN A TAX FREE... (answered by Alan3354)
Domenica invests $200 each quarter in a fixed interest mutual fund paying an annual of 7% (answered by Nate)
Use the savings plan formula to answer the following question.
Your goal is to create a... (answered by ikleyn)
Lisa invested her lottery winnings of $48 000 in two different mutual funds*. At the end... (answered by Boreal,greenestamps)