SOLUTION: Mario decided to invest his $620 tax refund rather than spending it. He found a bank that would pay him 4% interest, compounded quarterly. Answer the following questions, assuming

Question 1011686: Mario decided to invest his $620 tax refund rather than spending it. He found a bank that would pay him 4% interest, compounded quarterly. Answer the following questions, assuming that Mario deposits his entire refund and does not deposit or withdraw any other amounts.
a) Write an equation that models the growth of the investment.
b) How many years will it take for the initial investment to double.
Answer by addingup(3677) (Show Source): You can put this solution on YOUR website!
This is your formula:
Number of periods:
(log(FV/PV))/(log(1+r))
FV is the future value, 1240
PV is the present value, 620
r is the interest rate per period (4% compounded quarterly= 1% per quarter)
----------------------------------------------------------------
(log(1240/620))/(log1+0.01)= number of periods. Use your calculator and remember to divide the number of periods by 4 to get the years.
J
RELATED QUESTIONS
Mario decided to invest his $620 tax refund rather spending it. He found a bank that... (answered by solver91311,jorel1380)

1.Marina had an accident with her car and the repair bill came to $800. She didn�t have... (answered by ikleyn)

1. You receive a tax refund and you invest the 1,000 dollars in a bank that pays 5%... (answered by Fombitz)

Randy wants to move his savings account to a new bank that pays a better interest rate at (answered by solver91311)

The CEO has decided to plan for a salary action affecting a number of individuals in the... (answered by stanbon)

You choose to invest your $3410 income tax refund check (rather than spend it) in an... (answered by greenestamps)

According to the Internal Revenue Service, income tax returns one year averaged $1,332 in (answered by Boreal)

A person wants to invest $7500. He decided to invest the part of money in Bank A at (answered by checkley77)

My teacher didn't give me any formulas for these things.. please help me!! T~T 1. You (answered by KMST)