SOLUTION: How long does it take a $1000 investment to earn $100 interest if it is invested at 4% interest compounded quarterly?
Use the formula : A = P(1+r/n)^(n)(t)
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Question 945779: How long does it take a $1000 investment to earn $100 interest if it is invested at 4% interest compounded quarterly?
Use the formula : A = P(1+r/n)^(n)(t)
Answer by josmiceli(19441) (Show Source): You can put this solution on YOUR website!
is the amount you end up with
after time
= amount you started out with
because of compounding
quarterly
is a 4% interest rate
----------------------------------
Divide both sides by
Take the log base of both sides
2.394666 years
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check:
close enough
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