SOLUTION: if you put $2000 into an interest bearing account, where interest is compounded quarterly (4 times a year) at 6%, how long will it take for your money to triple?
use A=P(1+r/n)^nt
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Question 765582: if you put $2000 into an interest bearing account, where interest is compounded quarterly (4 times a year) at 6%, how long will it take for your money to triple?
use A=P(1+r/n)^nt
solve for t
help please!!
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
A=P(1+r/n)^(nt)
6000=2000(1+0.06/4)^(4*t)
6000/2000 = (1+0.06/4)^(4*t)
3 = (1+0.06/4)^(4*t)
3 = (1.015)^(4*t)
log(3) = log((1.015)^(4*t))
log(3) = 4*t*log(1.015)
log(3)/(4*log(1.015)) = t
t = log(3)/(4*log(1.015))
t = 18.4471905815477
So it will take roughly 18.4471905815477 years.
Note: round appropriately if needed
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