SOLUTION: Im sorry I haven't taken a math class in 20 years and I wasn't good to begin with and so I am lost here. I don't want someone to answer for me, I just wanna know how to do it corre

Question 878985: Im sorry I haven't taken a math class in 20 years and I wasn't good to begin with and so I am lost here. I don't want someone to answer for me, I just wanna know how to do it correctly.
How many years will it take $1000 to grow to 1700 if invested at 6 percent and compounded quarterly? continuously?
Thankyou
Answer by jim_thompson5910(35256) (Show Source): You can put this solution on YOUR website!
For the "compounded quarterly" part, use the formula

where,

FV = future value (amount you will have in the account at some point in the future)
PV = present value
r = interest rate (in decimal form)
n = compounding frequency
t = time in years

In this case,

FV = 1700 (amount you want t years in the future)
PV = 1000 (amount you deposit right now)
r = 0.06 (6% = 6/100 = 0.06)
n = 4 (compounded quarterly means you are compounding 4 times a year)
t = unknown (you are solving for this)

Plug all of that info into the equation and solve for t

Start with the given equation.

Plug in the given info.

Divide both sides by 1000.

Reduce.

Convert to decimal form.

Divide to get

Add.

Apply logs to both sides (so we can isolate that exponent)

Pull down the exponent (one of the many log rules).

Divide both sides by .

Use a calculator to evaluate the left side.

Divide both sides by 4.

Divide.

Flip the equation.

So it takes approximately 8.90996812639356 years. If you must round to a whole number, then round up to get 9 years. You round up to guarantee you let enough time go by to get past the target you want.

-------------------------------------------------------

For the next part, the "compounded continuously" part, use the formula

where,

FV = future value (amount you will have in the account at some point in the future)
PV = present value
e = 2.718... (it's a constant like and it goes on forever without a known pattern)
r = interest rate (in decimal form)
t = time in years

I'll let you do this part.
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