document.write( "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%
\n" ); document.write( " compounded quartely? \n" ); document.write( "

Algebra.Com's Answer #830504 by Edwin McCravy(20054) $\"\"$ $\"About$

You can put this solution on YOUR website!

\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "A = amount to become = 3205.09\r\n" );
document.write( "P = principal = beginning amount = 2500\r\n" );
document.write( "r = 5% = 0.05\r\n" );
document.write( "n = 4 since compounding is quarterly, 4 times a year.\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Divide both sides by 2500\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Take natural logs of both sides\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Move the exponent 4t in front of the natural log\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Solve for t by dividing both sides by 4*ln(1.0125)\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "\r\n" );
document.write( "Round to t=5 years\r\n" );
document.write( "\r\n" );
document.write( "Edwin

\n" ); document.write( " \n" ); document.write( "

\n" );