SOLUTION: A sum of $2500, 000 earns interest at a rate of 12% per year compounded quarterly. How long will it take the investment to grow to $ 400, 000?

Question 1164045: A sum of $2500, 000 earns interest at a rate of 12% per year compounded quarterly. How long will it take the investment to grow to $ 400, 000?
Found 2 solutions by ikleyn, solver91311:
Answer by ikleyn(52795) (Show Source): You can put this solution on YOUR website!
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A sum of $2500, 000 earns interest at a rate of 12% per year compounded quarterly. How long will it take the investment to grow to $ 400, 000?
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Hello, as I read your post, it asks about growing from $ 2500, 000 to $ 400, 000.

You EITHER write incorrectly in your post, OR do not understand (OR do not care about) the meaning of your words.

In any case, double check your post.

Then re-check and cross-check.

After finding and fixing your error, you may re-post to the forum.

Please do not post it to me personally.

Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

The future value, , of an investment of at a rate of percent per annum compounded times per year for years is given by:

You want the time for to grow to , so

Plug in the numbers you know, namely , , , and , and then solve for the remaining variable,

John

My calculator said it, I believe it, that settles it

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