SOLUTION: A man invests $3000 in an account that pays 7.5% interest per year, compounded quarterly.
(a) Find the amount after 2 years? (Round your answer to the nearest cent.)
$_________
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Question 1101776: A man invests $3000 in an account that pays 7.5% interest per year, compounded quarterly.
(a) Find the amount after 2 years? (Round your answer to the nearest cent.)
$__________________________
(b) How long will it take for the investment to triple? (Round your answer to two decimal places.)
____________________________ yr
Answer by greenestamps(13196) (Show Source): You can put this solution on YOUR website!
(a) The periodic (quarterly) growth factor is
2 Years is 8 quarters, so the value of $3000 after 2 years at this rate is
(b) For the investment to triple, we want the growth factor to be equal to 3:
It takes that many quarters for the value to triple at this interest rate. Since the question asks for an answer in years, the answer is rounded to 2 decimal places.
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