document.write( "Question 154536: How long would it take for $100 to become $1000 if it is invested at an 8% annual interest rate that is compounded quarterly? \n" ); document.write( "

Algebra.Com's Answer #113790 by AnlytcPhil(1810) $\"\"$ $\"About$

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How long would it take for $100 to become $1000 if it is invested at an 8% annual interest rate that is compounded quarterly?
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document.write( "where P = beginning amount = 100\r\n" );
document.write( "      A = final amount = 1000 \r\n" );
document.write( "      r = rate expressed as a decimal = .08\r\n" );
document.write( "      n = 4 (quarterly means compounded 4 times a year)\r\n" );
document.write( "      t = ? (number of years, the unknown)\r\n" );
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document.write( "Divide both sides by 100\r\n" );
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document.write( "Take logs of both sides:\r\n" );
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document.write( "  \r\n" );
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document.write( "Use the rule of logs:  \r\n" );
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document.write( "Divide both sides by (4*log(1.02))\r\n" );
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document.write( "29.06918686 years.\r\n" );
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document.write( "Edwin

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