SOLUTION: jimmy invest 18000 in an account that pays 7.27% compounded quarterly. How long(in years and months) will it take for his investment to reach 25000. Round the answer for months up

Question 1040069: jimmy invest 18000 in an account that pays 7.27% compounded quarterly. How long(in years and months) will it take for his investment to reach 25000. Round the answer for months up to the nearest multiple of 3

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
jimmy invest 18000 in an account that pays 7.27% compounded quarterly. How long(in years and months) will it take for his investment to reach 25000. Round the answer for months up to the nearest multiple of 3
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A(t) = P(1+(r/n))^(n*t)
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25000 = 18000(1+(0.0727/4))^(4*t)
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(1.0182)^(4t) = 25/18
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4t = log(25/18)/log(1.0182) = 18.21
Ans:: time = 18.21/4 = 4.55 years = 4 yrs 6.6 mts OR 4 years 7 months
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Cheers,
Stan H.
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