SOLUTION: How long it will take for P 2500 to become P 3205.09 if it is invested at an interest rate of 5% compounded quartely?

Algebra.Com
Question 1197286: How long it will take for P 2500 to become P 3205.09 if it is invested at an interest rate of 5%
compounded quartely?

Answer by Edwin McCravy(20054)   (Show Source): You can put this solution on YOUR website!


A = amount to become = 3205.09
P = principal = beginning amount = 2500
r = 5% = 0.05
n = 4 since compounding is quarterly, 4 times a year.







Divide both sides by 2500



Take natural logs of both sides



Move the exponent 4t in front of the natural log



Solve for t by dividing both sides by 4*ln(1.0125)





Round to t=5 years

Edwin


RELATED QUESTIONS

if 2500 is invested at an interest rate of 6.5% compounded monthly how long will it take... (answered by stanbon)
How long would it take for $100 to become $1000 if it is invested at an 8% annual... (answered by AnlytcPhil)
How long will it take money to double if it is invested at an interest rate of 6.5%... (answered by solver91311)
If $5530 is invested in an account at 5% interest compounded monthly, how long will it... (answered by Boreal)
If $ 2500 is invested in an account that pays interest compounded continuously, how long... (answered by lwsshak3)
If $7000 is invested at an interest rate of 6.5% per year, compounded monthly, how long... (answered by Alan3354)
How long does it take for an amount of money P to double itself if its invested at 7%... (answered by htmentor)
Given A=P(1+r/n)^nt find how long it takes for an investment to double if it is invested... (answered by stanbon)
How long will it take for an investment to double in value if it is invested at 5.75%... (answered by nerdybill)