document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=882252>Question 882252</A>: <I><SPAN STYLE=\"word-break: break-all;\"> you deposit $2000 in an account that pays 6% annual interest, compounded quarterly. How long will it take for the balance to reach $2500 </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #532819 by </B><A HREF=/tutors/aboutme.mpl?userid=lwsshak3><B>lwsshak3(11628)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=lwsshak3><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=532819\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> you deposit $2000 in an account that pays 6% annual interest, compounded quarterly. How long will it take for the balance to reach $2500<BR>\n" );
document.write( "***<BR>\n" );
document.write( "compound Interest Formula: A=P(1+i)^n, P=initial investment, i=interest rate per compounding period, n=number of compounding periods, A=amount after n-compounding periods.<BR>\n" );
document.write( "For given problem:<BR>\n" );
document.write( "P=$2000<BR>\n" );
document.write( "i=.06/4=0.015<BR>\n" );
document.write( "n=?<BR>\n" );
document.write( "A=$2500<BR>\n" );
document.write( "..<BR>\n" );
document.write( "2500=2000(1+.015)^n<BR>\n" );
document.write( "2500/2000=1.015^n<BR>\n" );
document.write( "1.25=1.105^n<BR>\n" );
document.write( "log(1.25)=nlog(1.015)<BR>\n" );
document.write( "n=log(1.25)/log(1.015)&#8776;15<BR>\n" );
document.write( "15 compounding periods=15/4=3yrs and 3 months<BR>\n" );
document.write( "How long will it take for the balance to reach $2500? 3yrs and 3 months </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );